Hype Vs Reality Of AI Crypto Tokens: How Will Bitcoin (BTC) React In Coming Days?
AI Crypto Tokens: AI tokens is the new buzzword in crypto market. Rapid rise in value for these tokens is reminiscent of the memecoin rally of 2021. While all the buzz is owing to the meteoric rise of ChatGPT and the arrival of AI based in applications, crypto traders need to be cautious when they choose to invest in cryptocurrencies due to the AI factor. Essentially, investors should be vary of the crypto project, in that it is really making use of artificial intelligence in meaningful way.
What Are AI Tokens?
It is widely believed that cryptocurrencies that rely on AI technology to scale up for various purposes are considered as AI based crypto tokens. However, traders face the danger of tokens masquerading as being AI based, on the back of the hype around these coins. Going forward, a lot could depend on how the AI technology develops to be able to power these crypto projects with lesser human intervention. Hence, much of these AI tokens are still work in progress before delivering in full capacity.
Tokens like The Graph (GRT) and SingularityNET (AGIX) have in recent times grew manifold, riding on the buzz behind AI in the crypto market. In fact, the last few weeks saw huge rise in interest for search traffic in terms like “crypto AI”.
Bitcoin Market Intact?
As with every new category addition of cryptocurrencies, questions are being raised around the market share of Bitcoin (BTC) if the AI token category eats into the altcoin market. However, BTC had long been rising on its strong fundamentals and the concept of its ‘store of value’ application. It is the macroeconomic scenario that continues to influence Bitcoin, as was seen in recent market events surrounding US Fed Chair Jerome Powell’s comments.
Also Read: Bitcoin News: Dormant Bitcoin Wallet Wakes Up After 11yrs And Makes 200,000% Profit
In terms of the percentage of total market capitalization among major cryptocurrencies, Bitcoin continues to maintain the 40% dominance since close to two years now.
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