The recent artificial intelligence (AI) mania has not only propelled graphics chipmaker NVIDIA’s stock to an all-time high, but it’s also generating significant demand for a new category of coins in the cryptocurrency market – AI tokens. While the relevance of AI technology products is expected to remain high in the foreseeable future, questions arise about the organic nature of the AI crypto token craze.
Two crypto tokens, RNDR and AGIX, have gained considerable value since January 2023, following the widespread adoption of ChatGPT. This surge in value is attributed to the growing excitement surrounding the AI space. However, industry experts, such as Steven Ehrlich, director of research at Digital Assets, remain uncertain whether the AI technology craze could translate into a full-blown demand for AI crypto tokens.
Ehrlich points out a potential mismatch between AI and crypto technologies, stating, “AI is computationally intensive, while crypto is very inefficient when it comes to computing power and computation. So I am not quite sure where that fit is.” Nonetheless, whenever AI-related news develops, AI tokens have consistently experienced increasing demand.
NVIDIA’s recent market cap milestone of exceeding $1 trillion raises discussions on the spillover effects on AI tokens. Will the continued growth and popularity of AI impact the value of these tokens, or could their surge end once the initial excitement wanes? The answer is still uncertain.
On a separate note, in the realm of cryptocurrency developments, Binance CEO “CZ” discusses plans for the United Arab Emirates, Bitcoin mining, and meme coins in a recent AMA. Meanwhile, former SEC Chief Harvey Pitt, who advocated for a crypto-specific US policy, has sadly passed away.
As cryptocurrency markets remain volatile, it’s essential to conduct thorough research before investing. Always remember that the opinions expressed by industry professionals or authors may not necessarily predict market outcomes, leaving the investor responsible for any personal financial losses. In conclusion, while the AI wave continues to create an impact on both stocks and crypto tokens, the future trajectory of AI crypto token demand remains shrouded in uncertainty.
Source: Coingape
