Artificial intelligence-based crypto assets have been on a notable rise for the past few months, continuing to attract attention as trading volumes and market values on various exchanges rapidly increased last month. Data from the crypto platform Bitget revealed that AI-based projects saw a surprising 400% increase in trading volume throughout February, reaching a total market value of over 39 billion dollars.
Intense Interest in Artificial Intelligence Projects
The primary reason for this rapid surge is investors flocking to AI-centered concepts such as Worldcoin (WLD), Livepeer (LPT), and Arkham (ARKM), all of which have seen price increases in the past few months. WLD, a token associated with Sam Altman’s AI-supported universal basic income project, saw an approximate 350% increase to over $7 per token from its listing price at the beginning of March 2023. Similarly, LPT and ARKM have also seen triple-digit percentage gains of approximately 140% and over 100%, respectively, since their launches.
Additionally, the average market value of AI tokens listed on Bitget increased by a surprising 77% in February compared to January, while the daily average number of investors also rose by 80% during this period. The exchange saw a 480% increase in AI token trading volumes between February 15-29.
Another reason for this excitement could be the upcoming release of OpenAI’s Sora, an AI model that converts text to video, which has already created significant buzz among AI investors and enthusiasts. The AI token craze, especially with industry giants like Nvidia achieving record revenues and profits due to the increasing demand for AI computing power, shows no signs of abating.
Nvidia’s earnings of 22.1 billion dollars in the fourth quarter of 2023 exceeded expectations, and the AI boom has been identified as the primary factor supporting the company’s latest blockbuster results and further fueling the flames of the AI crypto frenzy.
Prominent Figure Comments on Artificial Intelligence
Despite significant advancements in artificial intelligence technology, it’s still possible to say that the field is in its early stages. Can these projects truly justify the nearly 40 billion dollar AI token market value, or is it just a facade?
According to Calanthia Mei, co-founder of Masa Network, a blockchain platform offering resources for AI developers, the market currently displays a strong mix of real potential and possible deceit:
“I encourage everyone entering this market to ask themselves a crucial question: Is a token really necessary for this project, and does decentralization play a significant role in the core focus? Also, where will the ultimate value related to this token accrue in the long term?”
While the current market valuation seems filled with speculative deceit, Mei sees a tremendous long-term potential and value in AI technologies. She adds that the presence of AI in crypto is definitely here to stay.
