- ChatGPT’s popularity has lifted the hype around crypto’s utilization of Artificial Intelligence technology, triggering a rally in AI tokens.
- AI tokens SingularityNet, Fetch.ai and Numeraire yielded double-digit gains since February 13, whether this price rally is sustainable remains to be seen.
- Indexing Protocol, the Graph’s GRT token witnessed a massive revival on account of the AI narrative, crossing $1 billion in market capitalization.
ChatGPT, Open AI’s chatbot, launched in November 2022 has triggered a massive rally in Artificial Intelligence (AI) crypto tokens, tokens that use AI to develop or run their blockchains and ecosystems.
SingularityNet’s AGIX, Fetch.ai’s FET and Numeraire NMR are all AI-based cryptocurrencies that experienced double-digit gains to holders since February 15.
The ChatGPT-influenced AI narrative has also fueled a massive recovery in the Graph’s GRT token.
Also read: Bitcoin holders brace for impact as BTC correlation with stocks increases ahead of US CPI release
ChatGPT’s popularity fuels the hype in crypto’s AI tokens
ChatGPT, an Artificial Intelligence chatbot built by OpenAI broke the internet with its popularity after it was released on November 30, 2022 .
The bot amassed its first one million users in record time, five days. With the popularity of AI, the crypto Artificial Intelligence narrative fueled a rally in tokens like AGIX, FET, NMR and GRT.
AI tokens in crypto
The cryptocurrencies in the AI category have witnessed significant price rallies over the past two weeks, and it remains to be seen whether these assets can sustain their gains.
The Graph’s GRT token’s market capitalization crossed $1 billion after a massive recovery through the AI-fueled rally. In the past week, GRT yielded 23% gains for holders. The indexing protocol’s token experienced short-term accumulation by traders, with a spike in supply leaving cryptocurrency exchanges. Typically, accumulation of an asset triggers a rally, assisting GRT bulls in pushing the asset’s price higher.
AI token rally of 2023: Powered by speculation or driven by value?
The AI narrative has gained traction on crypto Twitter and among market participants. Crypto analyst Pablo Jodar Seores commented on the crypto AI tokens rally and argued that it is important to separate hype and speculation from the value driving price gain for holders.
Similar to the ICO craze of 2017, AI tokens are experiencing the spillover effects of ChatGPT’s popularity. Therefore, it is key to separate hype from value before pouring capital into tokens like AGIX, FET, NMR and SDAO.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin Weekly Forecast: BTC nosedives below $95,000 as spot ETFs record highest daily outflow since launch
Bitcoin price continues to edge down, trading below $95,000 on Friday after declining more than 9% this week. Bitcoin US spot ETFs recorded the highest single-day outflow on Thursday since their launch in January.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Solana Price Forecast: SOL’s technical outlook and on-chain metrics hint at a double-digit correction
Solana (SOL) price trades in red below $194 on Friday after declining more than 13% this week. The recent downturn has led to $38 million in total liquidations, with over $33 million coming from long positions.
SEC approves Hashdex and Franklin Templeton's combined Bitcoin and Ethereum crypto index ETFs
The SEC approved Hashdex's proposal for a crypto index ETF. The ETF currently features Bitcoin and Ethereum, with possible additions in the future. The agency also approved Franklin Templeton's amendment to its Cboe BZX for a crypto index ETF.
Bitcoin: 2025 outlook brightens on expectations of US pro-crypto policy
Bitcoin (BTC) price has surged more than 140% in 2024, reaching the $100K milestone in early December. The rally was driven by the launch of Bitcoin Spot Exchange Traded Funds (ETFs) in January and the reduced supply following the fourth halving event in April.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.