Crypto AI: Big Hope Or Hype

Crypto's Wild West Meets AI: Big Returns, Big Risks

The intersection of crypto and AI has created a new class of crypto tokens, with trading volumes surging to over $1 billion for popular coins like SingularityNET, Fetch.AI, and Render.

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AI-linked blockchain products offer a range of services, from payments and trading models to machine-generated non-fungible tokens and blockchain-based marketplaces for AI applications.

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The sector has seen strong investment returns, with the CoinDesk Indices Computing Index, which includes AI-linked tokens, rising 60% this year.

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Increased investment in the sector is evident, with CryptoGPT raising $10 million in funding this month for its data-selling platform for AI companies.

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Despite the strong returns this year, the AI-crypto sector remains niche, with a combined market cap of only $2.7 billion for CoinGecko's AI-classified coins.

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SingularityNET is one of the biggest such marketplaces and has seen the market cap of its token jump from $52 million to over $414 million this year.

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“Some specific AI projects could actually end up being the 'killer app' for public blockchains," said Pranav Kanade, portfolio manager at VanEck.

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