Is the ChatGPT effect on crypto AI tokens sustainable?
- ChatGPT’s popularity has lifted the hype around crypto’s utilization of Artificial Intelligence technology, triggering a rally in AI tokens.
- AI tokens SingularityNet, Fetch.ai and Numeraire yielded double-digit gains since February 13, whether this price rally is sustainable remains to be seen.
- Indexing Protocol, the Graph’s GRT token witnessed a massive revival on account of the AI narrative, crossing $1 billion in market capitalization.
ChatGPT, Open AI’s chatbot, launched in November 2022 has triggered a massive rally in Artificial Intelligence (AI) crypto tokens, tokens that use AI to develop or run their blockchains and ecosystems.
SingularityNet’s AGIX, Fetch.ai’s FET and Numeraire NMR are all AI-based cryptocurrencies that experienced double-digit gains to holders since February 15.
The ChatGPT-influenced AI narrative has also fueled a massive recovery in the Graph’s GRT token.
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ChatGPT’s popularity fuels the hype in crypto’s AI tokens
ChatGPT, an Artificial Intelligence chatbot built by OpenAI broke the internet with its popularity after it was released on November 30, 2022 .
The bot amassed its first one million users in record time, five days. With the popularity of AI, the crypto Artificial Intelligence narrative fueled a rally in tokens like AGIX, FET, NMR and GRT.
AI tokens in crypto
The cryptocurrencies in the AI category have witnessed significant price rallies over the past two weeks, and it remains to be seen whether these assets can sustain their gains.
The Graph’s GRT token’s market capitalization crossed $1 billion after a massive recovery through the AI-fueled rally. In the past week, GRT yielded 23% gains for holders. The indexing protocol’s token experienced short-term accumulation by traders, with a spike in supply leaving cryptocurrency exchanges. Typically, accumulation of an asset triggers a rally, assisting GRT bulls in pushing the asset’s price higher.
AI token rally of 2023: Powered by speculation or driven by value?
The AI narrative has gained traction on crypto Twitter and among market participants. Crypto analyst Pablo Jodar Seores commented on the crypto AI tokens rally and argued that it is important to separate hype and speculation from the value driving price gain for holders.
Similar to the ICO craze of 2017, AI tokens are experiencing the spillover effects of ChatGPT’s popularity. Therefore, it is key to separate hype from value before pouring capital into tokens like AGIX, FET, NMR and SDAO.
Author
Ekta Mourya
FXStreet
Ekta Mourya has extensive experience in fundamental and on-chain analysis, particularly focused on impact of macroeconomics and central bank policies on cryptocurrencies.
