Top Reasons Why AI Cryptocurrencies Will Dominate The Market Next

With the growing demand for AI technology, new techs and advancements are entering the market now. The effect of AI’s popularity is visible in the crypto market as new AI cryptocurrencies are launching in the market, ruling the portfolios of crypto investors.

So why the demand for AI cryptocurrencies is increasing among investors? And will they dominate the cryptocurrency market? Let us discuss that in this blog.

Overview Of the AI Crypto Market

The market value of AI cryptocurrencies has soared in the past few months. According to CoinmarketCap, the market cap of AI cryptos combined is above $36.5 Billion. In the last day only, the market cap has surged above 18%, and the trading volume has reached the $3.9 Billion market.

The AI market is comparatively new, but even in the short span, it has gained huge popularity among investors. AI cryptocurrencies like Near Protocol, Bittensor, Render, The Graph, and Injective collectively make the market cap of this category.

Near protocol (NEAR) is currently trading at $5.69 with a market cap of $6,064,215,065, whereas Bittensor (TAO) is trading at $568.73 with a market cap of $3,752,130,432. Lastly, Render (RNDR) and The Graph (GRT) are trading at $9.53 and $0.2836, with their market caps as $3,568,187,103 and $2,681,562,175 respectively.

Other than this, AI coins like Fetch.ai, SingualrityNet, and Theta Network are also popular and among the top choices for crypto investors.

Why AI Cryptocurrencies Will Boom?

Looking at the price movement and demand of AI cryptocurrencies in the market, analysts believe in increasing demand for these tokens in the upcoming days.

Industry Development and Support From World Leaders

Artificial Intelligence is a topic of discussion for every tech enthusiast as the top businesses, including Google, Microsoft, OpenAI, and XAI, are working on this industry development.

Among these companies, XAI is in the limelight for Elon Musk being a continuous cryptocurrency supporter. He has ventured into two AI companies, including XAI. The first is known as OpenAI, the company behind ChatGPT and SORA, run by Sam Altman now.

Because of this much attention to this field, AI cryptocurrencies spike with any new update or news. Sam has already launched an AI token called Worldcoin (WLD). It justifies the interest of these giant companies in AI cryptocurrencies as well.

The founder of crypto wallet Frontier, Ravindra Kumar, once said,

The growth opportunity around the AI and Web3 space combines early interest, potential, and hype

Vitalik Buterin also once talked about why he’s excited about AI technology. In an X post, he concluded that “AI-assisted formal verification of code and bug finding is something he’s excited about. He also said that it might help with Ethereum’s biggest technical issues of bugs in code.”

One application of AI that I am excited about is AI-assisted formal verification of code and bug finding.

Right now ethereum’s biggest technical risk probably is bugs in code, and anything that could significantly change the game on that would be amazing.

— vitalik.eth (@VitalikButerin) February 19, 2024

Unique Functionality of AI Cryptocurrencies

AI cryptocurrencies can do everything that normal cryptocurrencies do, but they also carry a few additional features. They run on AI-enabled platforms, which make the AI cryptocurrencies self-learning or adoptive, where they can learn from the transactions and improve.

Secondly, AI cryptos work on machine learning algorithms, which allow them to analyze data and make predictions. As a result, they can understand trends and the crypto market to suggest better investment decisions.

Lastly, being equipped with blockchain and Smart Contract technology, AI cryptocurrencies ensure the security and transparency of the network.

Conclusion

Even when the crypto market has struggled with volatility issues recently, AI cryptocurrencies were the least impacted. Based on their growing demand and increased popularity, it can be anticipated that AI cryptocurrencies will make a better place for themselves in the crypto market.

The post Top Reasons Why AI Cryptocurrencies Will Dominate The Market Next appeared first on CoinGape.

Crypto Pulpit