It is said that when Bitcoin sneezes, the entire virtual currency market catches a cold. BTC hit a new all-time high for the second time this week, and the ripple effect is reflected in other altcoins, primarily AI cryptocurrencies. Near Protocol, Render, Ronin, The Graph, and WorldCoin are the top gainers this week, showing growth of over 50%. While investors and enthusiasts are excited about the performance of AI altcoins, the Coinbase report raises questions about whether these tokens are just hype or a sustainable investment opportunity.
What is happening with AI altcoins?
Despite outperforming Bitcoin and traditional tech stocks in the past few weeks, concerns over speculative trading and concentrated dependencies have cast doubt on the long-term sustainability of AI-themed tokens. There are still doubts. Experts emphasize the importance of substantive implementation, technological progress To increase the utility of AI tokens.
9/ Things like Ethereum's Dencun upgrade and the rise of Layer 2 are real technological advances that make leveraging the non-monetary or monetary aspects of public blockchains much more interesting than before.
— Matt Hougan (@Matt_Hougan) March 8, 2024
Nevertheless, caution is recommended, considering the increasing number of cryptocurrency scams and the need to thoroughly investigate the fundamentals of the project. At the end of the day, the future of AI tokens remains uncertain and depends on their ability to tackle real-world problems and navigate the ever-changing cryptocurrency landscape. With all this in mind, let’s take a closer look at the AI tokens that can actually help advance the crypto industry.
1. Render Network (RNDR)
Market capitalization: $4.3 billion
Render Network is a prominent player in the AI industry, facilitating the contribution of GPU power by individuals and helping AI companies leverage resources for tasks such as 3D rendering and digital content creation. The establishment of this infrastructure network is critical to the advancement of AI and machine learning, solidifying its position as a key element in the AI ecosystem.
A distributed network of GPUs provides AI companies with virtually unlimited computing power and a cost-effective option for training AI models. Additionally, AI companies can leverage the power of GPUs to render videos, motion graphics, and images generated by AI technologies such as Sora and Dall-E.
AI tokens not only monetize GPU rendering, but also ensure image rights protection and provide AI services.
2. SingularityNET ($AGIX)
Market capitalization: $1.59 billion
SingularityNET ($AGIX) stands out as a trending AI-based cryptocurrency with a market capitalization of $1.59 billion. This decentralized AI marketplace is dedicated to accelerating advances in artificial general intelligence (AGI) research. Founded by Dr. Ben Goertzel and Dr. David Hanson, SingularityNET enables developers to share their AI innovations for universal access and provides a wide range of services on the platform. These services include multilingual speech translation, real-time speech cloning, neural image generation, and more.
The $AGIX token serves as the platform's native utility token and is essential for paying for marketplace services, participating in governance votes, and staking.
3. Graph (GRT)
Market capitalization: $4.2 billion
Graphs are essential tools for managing and retrieving data on networks such as Ethereum and IPFS. It plays a key role in his DeFi and Web3 ecosystems, allowing developers to easily create and share open APIs called subgraphs. These subgraphs allow applications to seamlessly access blockchain data using GraphQL. Currently there is a hosted service, but the project plans to launch a decentralized network in the near future.
The protocol already works on Ethereum, IPFS, and POA, and there are plans to integrate more networks. Graph has experienced significant growth with over 3,000 subgraphs deployed by different developers for different DApps. Its usage is increasing by more than 50% every month, reaching over 7 billion queries in September 2020.
Graph currently supports Ethereum and IPFS, and we believe in making querying all your Web3 data as easy as possible.
That's why we're excited to explore integration with other L1s to provide subgraphs to all Web3 developers. 🧑🚀https://t.co/KiMWYxVJtp
— Graph (@graphprotocol) January 28, 2021
The Graph's native cryptocurrency, GRT, is utilized to ensure the security of the data contained in its network. All users, including indexers, curators, and delegators, must stake their GRT to fulfill their responsibilities and receive fees from the network in return.
4. Fetch.ai (FET)
Market capitalization: $2.3 billion
Fetch.ai is dedicated to developing a decentralized digital world where autonomous software agents can perform tasks for people and organizations. Their goal is to establish a blockchain platform that allows machines to communicate, learn, and collaborate in a secure and decentralized manner. The project is known for its focus on “autonomous economic agents” (AEAs), which are software entities that can perform tasks, conduct transactions, and collaborate with other agents within a decentralized network. Fetch.ai envisions an ecosystem where these agents can support various activities such as supply chain optimization and energy trading.
The Fetch.ai network is built to accommodate a variety of scenarios by providing a structure for agents to find each other, negotiate, and perform tasks in a trustless manner. Leverage technologies such as multi-agent systems, machine learning, and blockchain to facilitate effective and secure communication between agents. The native cryptocurrency of the Fetch.ai network is FET, which serves a variety of functions within the ecosystem, including compensation for services provided by agents and involvement in network governance.
Fetch.ai (FET) is the cryptocurrency that powers the Fetch.AI platform. FET tokens have multiple uses within the Fetch.AI ecosystem, including performing transactions, enabling communication, staking, and fostering active engagement.
5. NEAR Protocol (NEAR)
Market capitalization: 8.2 billion
The NEAR protocol operates as a layer 1 blockchain network. Provides a foundation for developers to create decentralized applications (dapps). Near is considered a competitor to Ethereum as it seeks to challenge the success of the leading layer 1 blockchains.
The main criteria for Layer 1 networks are transaction costs, speed, and the ability to maintain these characteristics as transaction volume increases. Near Protocol is faster and cheaper compared to Ethereum. Near is projected to be capable of processing approximately 100,000 transactions per second (TPS).
NEAR tokens serve as collateral for payment of transaction fees and data storage on the blockchain. Stakeholders in the blockchain ecosystem will be awarded NEAR tokens. A transaction validator receives her NEAR token reward every epoch. This corresponds to his 4.5% of the total annual NEAR supply. According to CoinMarketCap, the token ranks 19th with a market capitalization of 8.2 billion.
conclusion
In summary, the recent rise of AI altcoins such as Render Network, SingularityNET, The Graph, Fetch.ai, and NEAR Protocol signals a wave of innovation in the cryptocurrency space. While Bitcoin’s influence remains significant, these projects offer concrete solutions for the future of AI and blockchain. However, caution is advised as long-term sustainability is uncertain and projects need to be carefully evaluated. As the industry evolves, investing in AI tokens with real-world utility has the potential to address real-world challenges and advance the cryptocurrency landscape.