Digital currencies hardly need an introduction. Despite being a novel asset class, cryptocurrencies have already become a popular long-term investment option and an increasingly widespread form of payment, being used to purchase an expanding range of products and services. Even for those who are not particularly interested in the industry, grasping the basics or learning how to buy Bitcoin p2p is no longer viewed as rocket science.
However, when people think about crypto or want to expand their knowledge in the field, they direct most of their attention toward the big names in the industry such as Bitcoin and Ethereum, disregarding the fact that the crypto space encompasses a variety of other projects and assets, and AI-related cryptocurrencies are definitely a category worth exploring. Recent data suggests that AI cryptos have been experiencing a notable rise in value over the past months, catching traders’ and investors’ eyes as the market hopes for a new bull run.
What are AI cryptocurrencies?
There’s no denying that artificial intelligence (AI) and crypto are two of the most transformative technologies of our time, so it makes perfect sense that these fields have come together in the form of AI cryptocurrency. For those who are not familiar with the term, AI crypto designates a specific category of crypto projects that incorporate and leverage AI elements in one way or another. AI crypto coins are used to fuel AI-based blockchain platforms, giving users the possibility to access this technology and the benefits it provides.
At the moment, AI cryptocurrency represents a rather novel development and a yet unexplored territory for many. But as AI technology continues to advance, with its applications spanning across a variety of industries and sectors, the popularity of AI crypto is bound to increase, meaning that the number of projects in this space is likely to grow in the future.
The influence of ChatGPT on AI-related crypto
Chatbots are not a new technology, being used in business-to-consumer (B2C) and business-to-business (B2B) markets for years. However, the already famous ChatGPT has taken things to a whole new level, quickly captivating the public’s attention and imagination with its astounding capabilities.
Developed by artificial intelligence company OpenAI, ChatGPT was launched in November 2022 and it took the internet by storm, becoming one of the fastest-growing apps in internet history. The platform registered 1 million users per day within its first week of release, and by January 2023 it had already reached approximately 100 million monthly users. While there are no official data on the number of monthly users at the moment, certain sources speculate that it might be close to 1 billion, and the demand for ChatGPT continues to increase.
As a natural language processing tool powered by AI technology, ChatGPT can interact with users in a conversational way, as explained on the project’s official website. The tool is much more advanced than its predecessors, being able to accurately answer questions on a wide variety of topics, admit and identify mistakes, remember the context of a conversation, contradict erroneous statements and decline unsuitable demands.
To sum it up, ChatGPT is the closest thing we’ve got to human-like reasoning, so companies and individuals are already dreaming of the numerous applications and enormous opportunities that can derive from it. From composing emails, writing college essays or coding to creating personalized workout and diet plans, ChatGPT can do all that and more.
It’s going to take a lot of time and research to explore its potential and understand its limitations. But what we do know right now is that ChatGPT’s staggering popularity has already had a notable impact on all AI-related products and AI crypto makes no exception.
According to a study conducted by researchers at the Blockchain Research Lab in Hamburg, Germany, the launch of ChatGPT coincides with a rising trend in the prices of crypto coins associated with artificial intelligence projects. The academics that took part in the research stated that the tool has had a considerable impact on the performance of AI-related cryptocurrencies, regardless of the bearish trend that is still dominating the crypto market. Based on their findings, the one-month price increase amounted to 15.6%, while the two-month rise reached an astounding 41.3%.
As for the main factors that have fueled this rapid rise in AI crypto value, researchers mentioned that social media hype and public sentiment played a key role in the phenomenon. ChatGPT became an instant hit on the internet, being discussed on all social media platforms as the hottest tech product in history. This caused institutional and retail investors to shift their attention and their money toward AI-based projects and put the spotlight on the potential of AI crypto assets.
It’s also possible that the unexpected popularity of ChatGPT might have enhanced the dissemination of crypto-related information in retail investors’ and traders’ circles by increasing awareness of the topic and making it easier for the average individual to decipher the complexities of the crypto market.
By comparison, digital currencies that had no connection with artificial intelligence followed a different path in the months following the launch of ChatGPT. Although most coins performed slightly better since the beginning of 2023, none of them experienced a similar increase as AI-related crypto. There was a lot of sideways movement recently, including for crypto giants like Bitcoin and Ethereum, and the trend is likely to continue over the following months until the market finally recovers from the latest crypto winter and enters a new bull run.
For the moment, crypto traders and investors are treading carefully as there’s a lot of uncertainty and instability in the market and risks are as high as ever. But the recent performance of AI-related crypto assets proves that the industry still has many pleasant surprises in store, so there’s no reason to lose hope.
