The value of artificial intelligence (AI) cryptocurrencies has been on the rise amid increased development in the sector that was triggered by the initial success of the text-based platform ChatGPT. Following the hype around AI, cryptocurrencies in the sector have increasingly recorded an inflow of capital.
In particular, as of March 1, the market cap for AI-centered digital assets had surpassed $4 billion to stand at $4.18 billion, according to data by Crypto Slate.
By leveraging the web archive tool, Finbold has determined that the market cap represents an inflow of about $1.62 billion from the $2.56 billion recorded on January 27. The value represents a growth of about 63%. At the same time, the capital inflow saw the AI sector’s dominance in the crypto market grow from 0.24% to 0.39%.
A breakdown of the specific cryptocurrencies shows that The Graph token accounts for the highest market cap at $1.38 billion, trading at $0.15642. Besides backing the AI space, the protocol’s native token GRT can be leveraged for staking, payments within the network, and earning fees for depositing it into a bonding curve and delegating to indexers.
Other high-ranking AI cryptocurrencies include SingularityNET’s native token AGIX ($611.59 million) and Fetch.ai’s FET token ($371.89 million).
Drivers of AI cryptocurrency growth
Although AI cryptocurrencies have recorded significant growth, it is worth noting several analysts remain skeptical regarding their overall potential. At the moment, sustained success is tied to future developments in the world of AI.
Overall, the growth opportunity around AI is a combination of investor interest, potential, and hype. In the meantime, the sector is witnessing the emergence of innovative and compelling use cases highlighted by ChatGPT.
At the same time, the token’s price trajectory will rely on the overall market sentiments. Notably, the crypto market rally in 2023 has slowed down as the sector battles fresh macroeconomic concerns.
Nevertheless, AI tokens are still worth keeping an eye on despite already such enormous gains, with a previous Finbold report highlighting the top 5 artificial intelligence (AI) cryptocurrencies to watch out for in 2023.
Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.