W Power 2024

AI tokens lead crypto surge, outpacing Bitcoin's rise

The growth of many AI-related crypto tokens has surpassed that of Bitcoin in the past year, as the leading cryptocurrency reached record highs

Shashank Bhardwaj
Published: Mar 21, 2024 03:00:19 PM IST

AI tokens lead crypto surge, outpacing Bitcoin's riseImage: Shutterstock
In the crypto market, there's a significant trend emerging: artificial intelligence (AI) tokens are experiencing a surge, closely mirroring the growth of tech giants like Nvidia. This surge is driven by investor interest in AI technologies, particularly those related to machine learning.

Interestingly, over the past year, these AI tokens have shown faster growth than Bitcoin, reaching record highs. Their combined market value has jumped from $2.7 billion to $26.4 billion, with significant increases seen in the last month alone, ranging from 145 percent to 297 percent.
Optimistic industry predictions suggest further potential for growth, as crypto and blockchain technology are seen as potential solutions to some of the AI industry's challenges, including privacy and computing power needs.

The CoinDesk Indices Computing Index, incorporating AI-linked tokens, has surged by over 165 percent in the past 12 months, outpacing Bitcoin's rise to record levels. Trading volumes in AI tokens have soared this year, hitting an all-time high of $3.8 billion in late February.

Some of the more prominent AI blockchain projects currently include the Render Network, which provides a blockchain platform for peer-to-peer sharing of AI-generated graphics; Fetch.AI, a platform for building AI applications; and SingularityNET, an AI services marketplace.

With substantial increases in market value and trading volumes, coupled with promising integration with blockchain technology, AI-focused crypto ventures present a compelling narrative for further growth and innovation in the industry.

In the meantime, regulation for crypto remains subdued across most nations and regions of the world. As AI and other emerging technologies intertwine with blockchain, crypto tokens and coins must be involved as a medium of exchange in the digital, decentralised space. As analysts and experts iterate, the growth of these combined technologies would be stunted at one point without sufficient government backing. The need of the hour, therefore, is comprehensive regulation spanning borders.

Shashank is the founder of yMedia. He ventured into crypto in 2013 and is an ETH maximalist.
Twitter: @bhardwajshash

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