A slide in cryptocurrencies also sent many AI & Big Data Tokens toward the bloodbath. The Graph, the largest AI token by market capitalization, sank as much as 13.65 percent in the past 24 hours and was trading at $0.1519. Now, the question is, the rally that came after a J.P Morgan report that says traders are turning their attention to Artificial Intelligence and away from blockchain was just a crypto proxy to the AI bubble?
AI Crypto Tokens in Deep Shade of Red
A bearish trend prevailed on the AI crypto market on February 10, 2023. The Graph, SingularityNET, Oasis Network, Fetch.ai, Ocean Protocol, and iExec RLC all traded in losses. According to data from Coinmarketcap.com, the AI crypto market dropped 10.61 per cent to $4.4 billion.
According to data, price of The Graph (GRT) coin, one of the most valued AI crypto tokens in the world, has dropped more than 10 per cent in the last 24 hours after gaining almost 64.23 per cent in the week. AGIX, the token of Singularity NET, has lost more than 7% in the past 24 hours after a staggering 101% in the last seven days. Oasis Network, the third-largest AI cryptocurrency, has also fallen 14 per cent and other tokens have also followed the suit.
Experts and Their Opinions
The cryptocurrency market is often fueled by current trends, which usually lead many people (especially newbies) to invest in projects that show promising results at the beginning but turn into ashes soon, Unfortunately, AI crypto tokens also run the risk of becoming just another infatuation in the industry that has been fueled by hype.
Vasco Lopes, blockchain and artificial intelligence researcher at the NOVA school of technology near Lisbon, Portugal expressed his strong opinion with Forbes recently saying,
“The rise in the price of AI-related cryptocurrencies can without a doubt be driven by real and tangible developments in the AI and blockchain industries. However, AI-related cryptocurrencies are also influenced by hype and investor sentiment, as the increased popularity of AI and AI-related products, such as the release of OpenAI’s ChatGPT language model, generates excitement and interest in the AI sector.”
Talking about TRON DAO’s recent move of establishing a $100 million Artificial Intelligence Development Fund, Noelle Acheson, Former Head of Research CoinDesk and Market Insights Genesis Trading, said “The moves feel like an extension of traders looking for hot narratives regardless of actual value.”
In conclusion, Even though JPMorgan’s “The e-Trading Edit” report suggests that 53% of institutional traders cited AI and machine learning over the blockchain. Experts still think AI crypto tokens are a risky bet.