The monster success of ChatGPT radiates the world of cryptocurrencies. As Microsoft plans a major investment in OpenAI, several tokens that rely on artificial intelligence have surged.
These last months, generative artificial intelligence, such as ChatGPT, Stable Diffusion or Midjourney, are on everyone’s lips. As students massively use AI to cheat and hackers use it to craft phishing emails, Microsoft plans to pump another $10 billion into OpenAI, the startup behind ChatGPT. The American firm aims to integrate the chatbot into several of its products, including the Bing search engine, Outlook, Word and Powerpoint.
In the run-up to this massive investment, several cryptocurrencies suddenly took off. As our colleagues from The Block report, nine AI-related cryptocurrencies have recently experienced an increase in their value.
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The AI boom is affecting cryptocurrencies
On CoinGecko, the cryptocurrency data aggregator, we realize that the price of some tokens openly based on AI has increased by more than 50% in the space of a week. Several projects have even recorded a three-digit increase. This is the case ofImage Generation AI (ImgnAI). Launched in October 2022, the project makes it possible to design cartoon-like images using a simple chatbot. The utility token relating to the initiative took over 700% in a few days. Likewise, the volume of transactions reached a record high.
On its website, the Image Generation AI team explains that it wants to facilitate the creation of non-fungible tokens (NFTs) by ” pushing the limits of creativity » of its users. As part of this ecosystem, the ImgnIA token allows its holders to ” unlock new art styles/models to create images » and ” to edit high definition images (HD to 4K).
Fetch.ai, a British company that proposes to create an ecosystem in which blockchain and artificial intelligence work in osmosis, has also benefited from the renewed interest generated by ChatGPT. Inaugurated in 2017, the project, based on smart contracts, recorded a rise of more than 600% of its token in a few days. The utility token is used to pay the fees for using the various services in the Fetch ecosystem.
Obviously, investors and speculators are massively interested in these projects to take advantage of the enthusiasm around AI. Note that all of these cryptocurrencies have low capitalization. They are far from the colossi of the ecosystem like Bitcoin, Ether, Solana or BNB. Clearly, it only takes a handful of investments to inflate the price of tokens. These sudden market movements are typical of projects with very little liquidity.
A general rebound in cryptocurrencies
These increases occur in a general context of rebound. Despite the cryptocurrency crash, King Bitcoin has been on the rise again over the past few days. The digital currency is ironed above the $20,000 threshold. This is a first since the bankruptcy of FTX last November. As always, Bitcoin pulled other digital currencies higher in the market. This is the case of Ether, which climbed above $1500 for the first time in two months.
To explain this unexpected rebound, observers point to several indicators, including the fall in inflation and the rise of certain stock market indices. After difficult months, the world economy seems to be gradually recovering. While ” traditional stock markets are seeing some resurgence”the crypto-asset industry is experiencing a rebound ” much more energetic, notes Simon Peters, an analyst at eToro. The expert nevertheless recommends to remain cautious. At this stage, nothing indicates that the rise will continue in the short term.
The Block
