Trends and Predictions: Cryptocurrencies and Artificial Intelligence in 2023-2024
The latest report from Coinbase on cryptocurrencies and artificial intelligence (AI) indicates that AI-related crypto tokens have outperformed bitcoin and ether since the beginning of the last quarter of 2023. During the same period, these tokens have also outperformed major AI-related stocks such as Nvidia and Microsoft.
According to the report, this data suggests that the price of AI-focused tokens could continue to rise even if the price of bitcoin begins to decline. However, this price decline could lead to increased volatility during periods of bitcoin's decline.
The report provides an example of the price movement of the Worldcoin token to show the relationship between the performance of AI-related tokens and news headlines about AI.
According to the report, even with the release of the Worldcoin World ID 2.0 update on December 13, 2023, the value of the WLD coin did not show significant growth. However, after the Worldcoin project was promoted by founder Sam Altman just two days later, the value of WLD increased by 50%.
Similarly, when OpenAI, also associated with Altman, released Sora, the price of WLD nearly tripled. Even though Worldcoin's $80 billion value remained below that of OpenAI, which was already generating about $2 billion a year in revenue.
However, the Coinbase report concludes that many "short-term drivers of constant demand" are still missing in AI-related token trading. The lack of clear forecasts and adoption rates means that trading in such tokens is largely based on "information speculation."
The report concludes that "price and utility will eventually converge," but it remains an open question how long this will take and whether utility will grow in line with price or vice versa. Nevertheless, the ongoing constructive crypto market and outperformance of the artificial intelligence sector may keep information pressure on the crypto-II market strong for some time.
Investors interested in trading AI-related tokens are advised to be cautious and explore how such tokens could be a better alternative before investing.
It is important to note that none of the market analysts predicted the possible movement of the AI token market. While altcoins related to new blockchain technologies including web3, layer 2 ether and defi were expected to grow, the real boom has been in AI tokens.
While Coinbase believes that the growth of AI altcoins may be due to information hype, other projects with the same level of attention have not shown similar growth.
For those who believe an "altcoin spring" is coming, it is important to consider AI altcoins as their growth has not yet peaked. In 2024, AI companies may present revolutionary new projects to the market that change the perception of AI capabilities and its impact on the industry.
Recently, ChatGPT has been integrated into the body of a robot, allowing the AI to interact with humans and analyze the surrounding information in real time.