Even as Bitcoin tumbles after weeks of rally, AI focused coins are seeing a surge in line with the upward trajectory of tech giants like Nvidia.
Bitcoin which earlier in the month shot up to an all-time high of $73,000 has seen a correction in price. On Tuesday, the key coin traded at $62770.50, more than 10 per cent down since a week ago.
On the other hand, the surge in AI coins is witnessing a propelling by investors' strong interest in technologies such as machine learning.
In the past year, AI crypto tokens have risen outpacing the growth of Bitcoin. With the world's leading cryptocurrency reaching unprecedented highs, these tokens collectively boast a market value of $26.4 billion, a significant leap from $2.7 billion just last April, reported Reuters.
Over the last 30 days alone, tokens associated with these projects have seen impressive gains, ranging from 145 per cent to 297 per cent.
If optimistic industry forecasts materialise, there may be further growth potential. Some experts suggest that crypto and blockchain tech could address certain challenges in the AI sector, like privacy concerns and the demand for computing power.
Markus Levin, co-founder of blockchain data storage firm XYO Network said, "As both AI systems and blockchain networks continue to grow, we will see more and more use cases fusing together the two industries."
Among the leading blockchain projects currently are Render Network, which facilitates peer-to-peer sharing of AI-generated graphics, Fetch.AI, a platform for developing AI applications, and SingularityNET, an AI services marketplace.
"Investors are starting to realize that if you want real value, you need products that are uncorrelated to the crypto market," said Ahmad Shadid, founder of AI-focused blockchain startup io.net.
Blockchain products integrated with AI encompass a diverse range of services, including payment systems, trading models, machine-generated non-fungible tokens, and blockchain-powered marketplaces for AI applications, allowing users to compensate developers with cryptocurrency.
According to investment manager VanEck, revenue from AI crypto projects could hit $10.2 billion by 2030 in their base case, and surpass $51 billion in their optimistic scenario.
VanEck highlighted crypto tokens as rewards, building physical computation infrastructure, data verification, and transparency in digital ownership as key areas where blockchain technology adds tangible value to AI advancement.
However, much like navigating the AI boom, distinguishing between winners and losers could be perilous.
"We're still in the very early stages of AI networks integrating with blockchain-based networks, and the utility of a lot of tokens is still very much uncertain," cautioned Levin from XYO Network.
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