The value of artificial intelligence (AI) cryptocurrencies has been on the rise in recent times as more and more investors are becoming interested in the sector. This is mainly due to the initial success of the text-based platform ChatGPT, which has triggered increased development in the AI space. This has resulted in an inflow of capital into the sector and as of March 1, the market cap for AI-centered digital assets had surpassed $4 billion to stand at $4.18 billion, according to data by Crypto Slate.
This represents an inflow of about $1.62 billion from the $2.56 billion recorded on January 27, which is a growth of about 63%. At the same time, the capital inflow saw the AI sector’s dominance in the crypto market grow from 0.24% to 0.39%. A breakdown of the specific cryptocurrencies shows that The Graph token accounts for the highest market cap at $1.38 billion, trading at $0.15642. Besides backing the AI space, the protocol’s native token GRT can be leveraged for staking, payments within the network, and earning fees for depositing it into a bonding curve and delegating to indexers.
Other high-ranking AI cryptocurrencies include SingularityNET’s native token AGIX ($611.59 million) and Fetch.ai’s FET token ($371.89 million). The growth opportunity around AI is a combination of investor interest, potential, and hype. This is mainly due to the emergence of innovative and compelling use cases highlighted by ChatGPT. At the same time, the token’s price trajectory will rely on the overall market sentiments.
Nevertheless, AI tokens are still worth keeping an eye on despite already such enormous gains, with a previous Finbold report highlighting the top 5 artificial intelligence (AI) cryptocurrencies to watch out for in 2023. It is worth noting that some analysts remain skeptical regarding their overall potential, as the sustained success of the sector is tied to future developments in the world of AI.
Overall, the AI sector is a rapidly growing space and investors should be aware of the risks involved in investing in AI-based cryptocurrencies. Although the sector has recorded significant growth, it is important to note that the value of these tokens is highly volatile and could be subject to sudden drops in value. Therefore, investors should do their own research and make sure they understand the risks before investing in any AI-based cryptocurrency.
Furthermore, it is important to remember that the crypto market is still in its early stages and the sector is still largely unregulated. Therefore, investors should be aware of potential scams and frauds and should exercise caution when investing in any cryptocurrency. It is also important to note that the content on this site should not be considered investment advice and that investing is speculative. When investing, your capital is at risk.