AI Tokens are the newest craze in the cryptocurrency industry. While ChatGPT’s rapid ascent and the introduction of AI-based apps are the main causes of the buzz, cryptocurrency traders should exercise caution when choosing to invest in cryptocurrencies because of the AI component. Investors should be wary of the cryptocurrency initiative in general since it effectively uses artificial intelligence.
How Do AI Tokens Work?
It is commonly held that crypto tokens that use AI technology to scale up are regarded to be AI-based cryptocurrencies. However, because of the buzz around these currencies, traders are at risk from tokens that falsely claim to be AI-based. In the future, a lot may depend on how AI technology advances in order to power these cryptocurrency ventures with minimal human involvement.
Due to the current surge in interest in AI in the cryptocurrency market, tokens like The Graph (GRT) and SingularityNET (AGIX) have seen tremendous growth. In fact, search traffic for phrases like “crypto AI” has significantly increased over the past few weeks.
Intact Bitcoin Market?
Questions are being asked about the market share of Bitcoin (BTC) if the AI token category consumes the altcoin market, as is the case with every new category addition of cryptocurrencies. As seen by recent market events involving remarks made by US Fed Chair Jerome Powell, the macroeconomic environment continues to have an impact on Bitcoin.
Since over two years, Bitcoin has maintained a 40% market share domination among the biggest cryptocurrencies in terms of market capitalization.