Crypto and Artificial Intelligence – The Cryptonomist

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There are several crypto projects directly related to artificial intelligence.

These are usually tokens or cryptocurrencies from ecosystems that leverage so-called “AI” in one way or another, but since there are so many of them, it is feared that some of these projects use artificial intelligence primarily as a buzzword to generate conversations about them. .

The best crypto projects using artificial intelligence

For example, no less than 128 cryptocurrencies, or tokens, related to AI or so-called Big Data are listed on CoinMarketCap, but only four are those that are also known to the general public.

It’s also worth noting that none of these 128 cryptocurrencies has a market capitalization above $1 billion, and only the top four exceed $200 million.

GRT (the graph)

The one with the highest capitalization (over $800 million) is GRT, which is The Graph’s token on Ethereum.

It is not an artificial intelligence project, but related to big data. It is also an indexing protocol for requesting data from networks such as Ethereum and IPFS, which is already used in several DeFi applications.

It’s worth mentioning because it’s clearly the main project in this category, not just on CoinMarketCap, although it shouldn’t be confused with actual AI projects. Moreover, since it is already used, it is easy to understand why it has such a high market capitalization than other projects in this category.

It is important to keep in mind that very often artificial intelligence relies on big data, in particular for what is called machine learning, or deep learning.

In addition, the second token in this category, OCEAN by Ocean Protocol, is also not about an artificial intelligence project in the strict sense, but about big data.

Fetch.ai (FET)

The most important true artificial intelligence crypto project is Fetch.ai. Unsurprisingly, its native cryptocurrency, FET, is the third by market capitalization in this category, as well as the first among those directly related to AI projects.

Fetch AI is a platform that enables the collective learning of IoT (Internet of Things) devices and algorithms. This is a project started in 2017 and based in Cambridge, UK.

The idea is to provide smart contracts to implement machine learning solutions for decentralized problem solving using artificial intelligence.

The FET cryptocurrency is nothing more than the native currency of this decentralized ecosystem based on smart contracts.

It is capitalized just over $200 million, but over the years it has been talked about several times due to its performance in the crypto markets.

It debuted in the crypto markets in 2019 at a price of $0.4, but that quickly turned out to be overkill. Indeed, by December 2020, before the start of the last major bull run, it had increased almost tenfold.

Thanks to the speculative bubble of 2021, however, it first rose to $0.8 in March and then to $1.2 in September. At that time, it had marked +200% from the initial placement price, but +3,000% from the pre-bubble price.

Since it is a cryptocurrency used in an ecosystem that uses artificial intelligence, such a boom had seemed strange, and in fact, in 2022 its price crashed below $0.06. in November. Thus 2022 has almost wiped out all the gains accumulated in 2021, bringing the price to -85% compared to its initial price in 2019.

Since then, however, it has recovered a bit, as it almost rallied back to $0.29. Yet, it still remains lower than the listing price.

SingularityNET (AGIX)

The other major AI-related cryptocurrency is AGIX, which is the token on Ethereum from the SingularityNET project.

Its market capitalization is similar to that of FET, but its history is very different.

SingularityNET is a blockchain-based marketplace that allows anyone to monetize artificial intelligence services. The problem is that five years after the token’s launch, there are still only 75 services on the market.

The initial placement price in the crypto markets in 2018 was $1.5, which is hugely higher than what the market has since valued the token.

In fact, in 2020 it had fallen below $0.02, and by the time the last big bull run started it was still below $0.05.

In 2021, the price managed to rally twice above $0.5, a tenfold increase from December 2020, but in 2022, it once again dipped below $0.04. Thus, the 2022 low was lower than the 2020 high and the current price is 90% lower than the initial 2018 price.

It is therefore a project that is struggling to take off, perhaps because it is too far ahead of its time.

The boom in artificial intelligence

Although artificial intelligence has now been used for decades, it was not until 2023 that there began to be a real popular boom. Previously, it was confined to real technical niches totally beyond the reach of the ordinary user, who was content to use artificial intelligence without knowing what it was or how it worked.

It is therefore possible both that the most successful AI-related crypto projects have not yet emerged, and that some of those that have already been launched but are struggling to start will sooner or later become very successful.

Additionally, one must distinguish between crypto-artificial intelligence projects that have their own cryptocurrency, or token, and AI projects that were to use an existing cryptocurrency instead.

Data currently emerging from the crypto markets reveals that there has not yet been an AI crypto project that has been able to flourish and make big numbers, and that it may still be too early to s expect anything major to happen in the short term anyway.

Partly because it’s hard for an AI project to be truly decentralized, as it requires huge investments and someone who can leverage them.

The real big advantage of cryptocurrencies and crypto ecosystems is precisely decentralization, which is not suitable, for example, for the initiatives of for-profit companies whose aim is to profit.

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