• The AI narrative has grown stronger in recent weeks, with the release of chatbot ChatGPT capturing the imaginations of people across the globe.
• Over the last 30 days, the top three gainers in the AI sector have been Kambria (up 445%), SingularityNET (up 322%), and Graphling Protocol (up 290%).
• Most AI crypto tokens are microcaps, with high risk and potential for high reward.
The Artificial Intelligence (AI) sector has been the subject of much buzz in recent weeks, with the release of chatbot ChatGPT capturing the imaginations of people across the globe. ChatGPT’s capabilities have showcased the potential of AI to revolutionize multiple aspects of life, leading some to dub AI crypto tokens as the next big thing. This has been reflected in the sector’s performance, with the top three gainers in the AI sector over the last 30 days being Kambria, SingularityNET, and Graphling Protocol which grew 445%, 322%, and 290%, respectively.
When filtering data by market cap, it was found that the entire AI sector comprises of mostly microcap tokens, with eight of the top ten performers having a market cap of less than $50 million. Microcaps equate to untested proof of concept, a high risk of failure/abandonment, and a lack of liquidity. However, the upside potential of such tokens is heightened by capital inflows generating more significant percentage gains on low market caps.
As of January 18, the top five AI tokens by market cap are AGIX, FET, OCEAN, RLC, and NMR. AGIX is an AI-focused blockchain protocol designed to provide a modular, secure, and open-source infrastructure for the development and deployment of AI models. FET, on the other hand, is a decentralized data exchange protocol and marketplace which utilizes blockchain technology to incentivize data sharing and data monetization. OCEAN is a decentralized, open-source AI marketplace that enables enterprises to deploy and monetize AI models in a trustless manner. RLC is a blockchain-based computational platform that enables users to access, share, and monetize their AI models. Lastly, NMR is a decentralized data marketplace that enables users to securely access, store, and monetize their data.
The performance of the top five AI tokens during 2022 has been mixed. AGIX experienced the most growth, with a 166% increase in its price since the beginning of the year, while FET had the most significant drawdown, losing 74% of its value from its peak price. OCEAN and RLC experienced modest gains of 32% and 39%, respectively, while NMR experienced a slight loss of 12%.
Overall, despite the mixed performance of the top five AI tokens during 2022, the future of AI crypto tokens looks bright. With the increasing demand for data and the growth of the AI sector, many analysts believe that AI tokens are positioned to become the next big thing in the crypto space.