A drop in cryptocurrency prices has contributed to the demise of many AI & Big Data Tokens. The Graph, the most valuable AI token in terms of market capitalization, fell as much as 13.65 percent in the previous day and was trading at $0.1519. Now the question is: Was the rise that followed a J.P Morgan research claiming that traders are shifting their focus from blockchain to artificial intelligence just a crypto proxy to the AI bubble?
AI Crypto Tokens in a Deep Red Shade
On February 10, 2023, the AI cryptocurrency market was in a bearish trend. All of the following traded in the red: The Graph, SingularityNET, Oasis Network, Fetch.ai, Ocean Protocol, and iExec RLC. Data from Coinmarketcap.com show that the market value of the AI cryptocurrency fell by 10.61% to $4.4 billion.
The Graph (GRT) coin, one of the most valuable AI crypto tokens in the world, has lost more than 10% of its value in the last day after rising by over 64.23 percent during the previous seven days, according to data. After surging 101% in the previous seven days, AGIX, the Singularity NET token, has dropped more than 7% in the last 24 hours. The third-largest AI cryptocurrency, Oasis Network, has also dropped 14%, and other tokens have done the same.
Professionals and Their Views
Sadly, AI crypto tokens also run the risk of becoming just another industry fad that has been hyped. The cryptocurrency market is frequently driven by current trends, which typically lead many people (especially newbies) to invest in projects that initially show promising results but quickly go bust.
In a recent Forbes article, blockchain and AI expert Vasco Lopes from the NOVA school of technology in the vicinity of Lisbon, Portugal, expressed his strong stance.
“The rise in the price of AI-related cryptocurrencies can without a doubt be driven by real and tangible developments in the AI and blockchain industries. However, AI-related cryptocurrencies are also influenced by hype and investor sentiment, as the increased popularity of AI and AI-related products, such as the release of OpenAI’s ChatGPT language model, generates excitement and interest in the AI sector.”
Noelle Acheson, former head of research at CoinDesk and Market Insights Genesis Trading, commented on TRON DAO's most recent action of establishing a $100 million Artificial Intelligence Development Fund by saying,
"The moves feel like an extension of traders looking for hot narratives regardless of actual value."
Conclusion: Despite the fact that 53% of institutional traders cited AI and machine learning above the blockchain, according to JPMorgan's "The e-Trading Edit" report. In their opinion, AI crypto tokens remain a dangerous investment.
