OpenAI’s ChatGPT has taken over the internet, being the fastest-growing software ever. The increased interest in the AI sector appears to have spilled over to the cryptocurrency industry, with AI coins now reporting healthy gains.
AI stocks and AI coins are now booming
Investors have been rushing to access opportunities in artificial intelligence since the internet was blown away by the potential of ChatGPT. Crypto traders seem to be trading this hype and are now making bets in crypto assets associated with AI.
OpenAI’s ChatGPT debuted towards the end of last year, triggering a rush in the AI industry. The popularity of AI has also led to tech giants rushing to invest in the AI industry. Microsoft backed OpenAI and is also looking to scoop a massive share of the search engine industry. On the other hand, Google’s parent company, Alphabet, and Chinese tech company Baidu have announced plans to release chatbots that will rival ChatGPT.
ChatGPT reaches 100 million active users in 2 months, the fastest growing consumer app in history.
— Watcher.Guru (@WatcherGuru) February 3, 2023
While these companies are some of the most publicly traded shares in the stock industry, crypto investors are looking for smaller AI investments that will deliver larger returns. However, there are concerns that the growth of the AI industry is a bubble that could burst soon.
Since the beginning of the year, digital assets have rallied as the market sentiment recovered from the collapse of FTX in November last year. Bitcoin has gained by 40% in a few weeks, and smaller altcoins also report gains. However, the assets that outperform the market are linked to AI.
A report by CryptoSlate collected data from 73 cryptocurrencies promoting AI services. The report noted that an index of these assets showed an 87% gain over the past week. Moreover, some individual tokens reported more gains.
Crypto traders accumulate AI coins
One of the tokens that have reported significant gains is Singularity NET, which has gained by 565% over the past month. Singularity NET is a project seeking to monetize AI services on the blockchain.
Another project that has reported notable gains is Artificial Liquid Intelligence, which maintains records of property rights for blockchain assets. The token has gained by 410% over the past month.
The two cryptocurrencies outperform the market despite having a low market capitalization. This shows that the low prices attract investors looking for significant investment returns.
Crypto traders are now known for trading out of emotions, mainly the fear of missing out (FOMO). Therefore, most crypto investors are now piling into the AI hype to ensure they can make returns during the bull run. The speculative bet on AI coins is significantly higher than the one on AI stocks.
Additionally, some of the popular names in the crypto industry are exploring ways to leverage the growing popularity of AI. Justin Sun, the founder of Tron, announced that he would create an AI-focused payments framework that will run on the Tron blockchain.
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