Artificial intelligence (AI) is all the rage right now, and with the cryptocurrency market only now coming out of a year long downtrend, everyone has shifted to AI, even the crypto community.
But instead of competing with each other, the two of the most innovative technologies of the modern era can work really well together. Both AI and crypto have the potential to revolutionize different industries, such as data and finance.
These cutting-edge technologies have seen explosive growth in recent years, and many believe they will continue to intersect and influence each other in new and exciting ways. The potential for combining crypto and AI is immense, from trading, analyzing data, and fraud detection to mining and security.
A study by financial giant JP Morgan also found that institutional traders are turning their attention from blockchain to AI. At the same time, the report stated that “crypto and digital coins… are predicted to have the biggest increases in electronic trading volumes over the next year.” So, combining crypto and AI makes all the sense, pointing to a bright future.
But this isn't anything new. There are already tons of projects that are leveraging the benefits of cryptocurrency and artificial intelligence to create innovative solutions.
According to CoinGecko, more than 50 projects in the blockchain space are making use of crypto and AI. Their total market cap is more than $3 bln, and they see a 24-hour trading volume of $350 mln.
So, let's take a look at some of the most prominent artificial intelligence coins:
The 59th largest cryptocurrency with a market cap of $924 mln, RNDR is one of the best-performing AI coins in the 24 hours with 10.8% gains and $184.36 mln in volume to trade at $2.51. The coin is up 115% in the past month and 520% year-to-date (YTD). RNDR, however, is still down 71% from its all-time high of $8.78 hit in Nov. 2021.
Besides being one of the top-performing coins, RNDR is also the trending AI coin on CoinGecko. This has been thanks to the announcement of approving the implementation of the new Burn-and-Mint Equilibrium (BME) model on the Solana blockchain by investing about 4.8 million RNDR for RNP-002.
Earlier this year, the community voted 100% to adopt a new tokenomics model. Under this model, “jobs-to-be-done” is priced in USD, and creators burn RNDR tokens equivalent to the job price. Non-transferable, non-fungible “Coupon Tokens” (or “Render Credits”) are then issued to track completed jobs.
The equilibrium is achieved when the number of tokens burned equals the number minted. In case usage grows, supply decreases, creating an upward price pressure, and if usage slows down, then supply increases, creating a downward price pressure.
Render Network is a protocol that enables distributed graphics processing. The Network basically connects those looking to render images and video with those who have idle graphics processing power by using RNDR as the medium of exchange.
Recently, RNP-003 titled “Resource Acquisition and Allocation for Core Team and Grants,” was also concluded, which aims to achieve decentralization. According to the project, this is an important step for Render Network as this would take it from being run by a team to being run by the entire community.
In Jan., a not-for-profit organization called Render Network Foundation was also announced, which is “dedicated to maintaining the core Render Network protocol and growing its community and ecosystem.”
At 105th place, AGIX has a market cap of $417 mln, and it is trading at $0.342. In the past 24 hours, the token has risen 0.8% while managing $30 mln in volume. The coin is down 15% in the past fortnight, and nearly 64% from its ATH of $0.950 hit in Jan. 2018 but is still up 216% in the past year. In 2023 so far, AGIX is up almost 650% thanks to AI mania.
Launched in 2017, SingularityNET is a blockchain-based AI project which is built on the Cardano network. The project raised $36 million in funding through an ICO six years back to create a decentralized, open-source Artificial General Intelligence (AGI).
Founded by AI researcher Dr. Ben Goertzel, SingularityNET is creating an ecosystem of platforms to provide AI-related services. There are already more than 10 AI-based platforms on its network that cater to finance, media, arts, entertainment, robotics, and biomedical industries.
AGIX, meanwhile, is the native cryptocurrency using which platform services can be availed. The tokens can also be staked to earn incentives and vote on governance proposals.
The token has been primarily surging due to all the attention AI space is getting, with Microsoft announcing a $10 billion investment in ChatGPT, Google announced a $300 million investment in AI startup Anthropic, and Elon Musk building a new AI company called X.AI.
The 116th largest cryptocurrency with a market cap of $359 mln is only up 2% in the past 24 hours while recording $57.8 mln in trading volume. Trading at around $0.345, FET is up 275% so far in 2023 but still down 70.5% from its $1.17 peak in Sept. 2021.
Despite the lack of gains, FET is trending on CoinGecko. The platform that uses AI to automate everyday tasks recently announced the development of new trading tools for decentralized crypto exchanges. The new platform will use AI to execute trades on behalf of users for the best possible trade outcomes and reduce manual intervention.
“As we stand at the forefront of a new era in the DeFi sector, with rapidly evolving technologies and innovations, we recognize the need to go deeper into decentralization,” said Fetch.ai Chief Executive Humayun Sheikh. “AI agent-based trading has enormous potential to remove central points of failure and solve some of DeFi's biggest problems, such as liquidity contract hacks and rug pulls, which cost the industry billions of dollars a year.”
Last month, Fetch.ai closed a $40 million funding round led by DWF Labs to advance its AI technology. Its new tools are slated for release in the Q2 of this year.
Image Generation AI (IMGNAI)
IMGNAI is a low-cap coin with a market cap of $11.4 mln, putting it at 946th place in the overall crypto market. The coin is up 52% in the past month and 3,245.95% from its January 6 low of $0.00043988. The coin hit an ATH of $0.055 earlier this month in Feb. and is currently down 72.3% from this peak.
ImgnAI is building a consumer AI product Nai, which is an AI-powered image generation bot. Users can generate art using Nai, Discord, and Telegram by putting in text commands.
The project offers several custom image models that allow users to bring their imagination to life. But this is not all. In the coming years, the project team aims to expand its image generation tooling to launch products for crypto-natives and no-coiners alike.
“While we're initially focused on image generation, ImgnAI is built to be so much more,” reads the project's official website.
CryptoGPT Token (GPT)
Another top trending token in the AI coin space is GPT, yet another low-cap cryptocurrency. With a market cap of $10.7 mln, GPT sits at 975th place and currently trading at $0.0395.
The token hit its ATH just last month at $0.147 and has since lost 74% of its value and is also down 9.4% from $0.0435 when it first started trading in early March.
Designed to cash in on the popularity of ChatGPT, CryptoGPT is an Ethereum layer-2 scaling solution that uses zero-knowledge (ZK) rollups to increase its throughput. ZK-rollups validate off-chain transactions using unique validity proofs, which are then bundled together and stored on the main chain.
The project also works on a data-to-AI engine, which collects, encrypts, and transfers data for applications. “Instead of applying ZK technology to payments, CryptoGPT integrates it for private data transfers,” the project said in the statement.
The token powers the CryptoGPT ecosystem and is used to pay gas fees on the networks and paid to users for their activity data. Users can also stake their tokens to earn validation rights.
Earlier this month, the project raised $10 million in a Series A funding round at a valuation of $250 million, led by market maker DWF Labs. This funding came on the heels of the project's Web3-focused AI assistant “Alex.”
Meanwhile, the proceeds from the fresh funding will be used to grow the developer team and expand the project's presence in the Asian markets, said Dejan Erja, co-founder and CTO of the AI-focused blockchain.
Overall, CryptoGPT aims to allow users to earn money by monetizing their data and planning to roll out NFTs to store it.
As of writing this, the coin that is leading the AI coins is CAI, with 24-hour gains of 20.7%. Trading at $0.0255, CAI is up 40% this past month but is down 3% in 2023. The token hit its peak in Feb. this year at $0.112 and has lost 77.8% of its value since then.
This project is an AI-powered NFT generator that aims to revolutionize the NFT and the ChatGPT space by combining the power of AI and machine learning to create unique digital assets.
According to its CEO, Martin Weiner, the project's proprietary algorithm sets it apart from others. He further stated that CryptoAI is more accurate, efficient, faster than traditional methods, and more inclusive and accessible to a wider audience.
Currently, the performance of these coins shows that the AI narrative is hot and gaining traction from everyone; be it retail or institutions. But beyond price, AI and crypto complement each other very well, as they have great potential to improve efficiency and security in many areas of life.
In conclusion, combining cryptocurrency and AI helps create new opportunities for innovation and growth.