In this article we delve into the topic of AI by taking a look at what are the latest trends and the most promising crypto projects that integrate artificial intelligence.
We will then go on to see how AI tools can help in research and analysis of crypto projects, saving a lot of time.
Full details below.
Summary
The best crypto projects with a focus on artificial intelligence
It is not easy to do a review of the best crypto projects that integrate artificial intelligence technology, given the large number of sources competing to provide their interpretation.
In any case, here we will use the data on CoinMarketCap and Cryptoslate to give insights into the top AI tokens at the moment.
The “AI & Big Data” category found on CoinMarketCap’s research portal collects and ranks crypto projects related to this narrative by market capitalization.
Collectively, all of these cryptocurrencies have a marketcap of $4.35 billion.
Among the list are the likes of The Graph, Render Token, Injective, Oasis Network, SingularityNET, Ocean Protocol, Fetch.ai, and IExec RLC.
Note how the most capitalized crypto among those listed is The Graph, which ranks #41 of the entire crypto sector.
On its own, GRT has a dominance of 20% of the entire category in CoinMarketCap’s AI category.
On Cryptoslate, an on-chain news and data platform, different insights are present.
First, crypto assets Render Token, Injective, and Oasis Network are discarded from the ranking, which collectively capitalizes $2.34 billion with a sector dominance of 0.22% compared to the rest of the market.
The Graph (GRT) confirms the top spot on the podium of the top artificial intelligence crypto assets.
New projects not mentioned on Coinmarketcap such as Alethea Liquid Intelligence, Numerarie, dKargo, Covalent, and Phala Network emerge on the list from the sixth position onwards.
What stands out most to the eye is undoubtedly the distance from ATH recorded by every single token listed, with drawdowns from 85% and up.
The figure for Covalent, which marks -55% from its all-time high, is incorrect, as the crypto is actually down 95% from its ATH at $2.10 (now $0.107).
In any case, these data show how the FOMO at the beginning of the year on tokens belonging to the artificial intelligence universe did little to save them from a rather dire situation.
Speculatively speaking, most of these cryptocurrencies are garbage.
Artificial intelligence can help with the analysis of crypto projects
Having found that crypto projects in the artificial intelligence sector are registering price action with disappointing performance, it is deemed necessary to change the discussion to another directive.
What is worth focusing on is not the AI tokens themselves, but the inherent potential of the technology itself, which can be extremely helpful in the research and analysis of crypto assets.
In fact, a “simple” chatbot such as ChatGPT can be useful in a multitude of different instances, especially in information summarization, fundamental analysis, and the study of social media engagement.
In fact, any individual can ask artificial intelligence software to summarize the main features of a cryptocurrency, listing the main features of whitepapers, blog posts, and wiki entries.
One can also ask the chatbot owned by OpenAI, to list the most interesting data of a crypto project in terms of its potential in the long run, the fit of the product in the market and its advantages over other competitors.
Another aspect that should not be underestimated is the study of tokenomics that ChatGPT can perform for us, saving us a lot of time.
By analyzing the tokenomics of a specific token, we can come to conclusions in relation to the vesting of the cryptocurrency, its utility, and its distribution among different entities.
Studying this aspect also gives us insight into how the project is organized on the governance side, which is very important within Web3 communities to make sure that a decentralized consensus is reached among stakeholders.
Then there are other inquiries that can be made to artificial intelligence chatbots such as asking what kind of social media coverage a particular profile covers by evaluating its engagement.
In general, there are more benefits to using AI itself to study an industry-specific token, rather than choosing to buy a crypto that integrates artificial intelligence within its business.
Technology and speculation are two things that travel on two different planes and must be contextualized by avoiding trite assumptions such as: since AI is the future, I’ll buy The Graph and get rich.
This approach turns out to be misguided and unsuccessful, but it is often the one most used by retail investors, who know very little about markets.
The AI narrative in the context of cryptocurrencies
The artificial intelligence narrative has spread disruptively in the cryptocurrency world since the beginning of the year.
Particularly since ChatGPT, a machine-learning chatbot developed by OpenAI, made its market debut, it has been all the talk in Web3 circles, with an explosion of interest in late 2022 and early 2023.
Strong narratives such as this often risk creating detachment from reality, praising content at the highest level and depriving any discourse of concreteness.
AI technologies undoubtedly are a revolution and will be part of sociality in the coming years, but it is wrong to talk only about the merits and not the flaws.
Moreover, we cannot assume that AI software will change the cryptocurrency landscape overnight.
The fact of the matter is that they represent a very interesting innovation and that by integrating them with human ingenuity they will be able to help solve some problems and make the user experience of upcoming projects on blockchain better.
Conversely, if people believe that tokens that include the words AI or artificial intelligence within their business plans will take off and become the next dominant cryptocurrencies, they are very wrong.
Unfortunately, many fall for it and end up being buried by the downtrends of cryptocurrencies with useless use cases that lack any intrinsic value.
The exact same situation happened at the turn of 2021 and 2022 with the advent of the metaverse narrative, much praised in the early months and then ending up in the unforgiving zone of oblivion.
Metaverse-themed projects have been blatantly disappointing performers over the past year on the price front, in line with what is happening now with AI tokens.
Before being beguiled by the media, it is necessary to get your own idea about a specific concept, and evaluate the facts more than the words of influencers.
Technology and innovations are great, the problem is the overload of information to ruin everything.
