Cryptocurrencies integrating or planning to integrate artificial intelligence (AI) are rapidly gaining popularity. AI’s swift growth and development have sparked significant interest, debate, and concern among the public. Tech enthusiasts, investors, and government officials particularly have an interest in AI integration. Consequently, projects like OpenAI’s ChatGPT and its many alternatives have been making headlines, influencing the crypto industry. This trend mirrors the early days of Bitcoin and the creation of the decentralized finance (DeFi) market. However, as the broader cryptocurrency market grows, AI-focused projects have surged. This has made it challenging to identify the legitimate and promising ones.
Therefore, in this guide, we examine the top AI-based coins of 2024 that you should consider adding to your watch list. Let’s get into it!
What is AI Cryptocurrency?
Before we proceed, let’s briefly explain AI crypto and why this sector has blossomed in recent years.
At the forefront of crypto, AI crypto projects appreciated substantially, especially in the first quarter of 2024. This growth is driven not just by hype but by the powerful combination of AI and blockchain technology. Consequently, this has unlocked new use cases and applications in finance, data storage, cloud computing, and more.
For example, in decentralized finance (DeFi), we see various dApps leveraging AI. Decentralized exchanges (DEXs) can use AI to automate trading through algorithms, similar to many automated market makers. Additionally, AI enhances the screening process for smart contracts, enabling founders to detect potential threats and vulnerabilities.
Furthermore, AI is frequently used to produce generative art NFT projects, such as Interactive Non-Fungible Tokens (iNFTs). iNFTs incorporate intelligent traits and reasoning abilities. Currently, there are hundreds of AI-based crypto projects, each targeting specific markets both within and outside the crypto space.
Factors to Consider Before Investing in AI Coins
Investing in AI coins can be highly speculative and dangerous. Therefore, before entering this fast-changing sector, thoroughly analyze several vital variables including:
Project Reputation
Examine the AI coin team’s track record and expertise in artificial intelligence and blockchain technologies.
Community Engagement and Adoption
Determine the level of community support, interest, and adoption of the AI currency. A strong and active community can indicate the coin’s viability.
Technology Development
Explore the AI coin’s underlying technology, potential applications, and current development status. Additionally, assess whether the project is feasible and has a well-defined roadmap.
Top AI-based Crypto Projects to Watch Out For
Here are some of the top AI-based crypto projects to watch out for in 2024:
Render Network (RNDR)
This project is known for its decentralized GPU rendering platform. The platform allows artists to scale GPU rendering work on demand using high-performance GPU nodes. Essentially, it addresses the growing need for reliable GPU resources due to the rise of AI development.
Fetch.AI (FET)
Focused on building and promoting “AI agents,” Fetch.AI offers modular building blocks for various real-world applications. These AI agents can be used to scale different applications, making Fetch.AI a versatile platform in the AI and blockchain space.
SingularityNET (AGIX)
As the first decentralized blockchain-based marketplace for AI resources, SingularityNET aims to accelerate AI breakthroughs. It allows users to create AI-powered applications and offers computational resources for AI development.
The Graph (GRT)
This project has seen significant growth, particularly due to its integration with various blockchain projects. The Graph provides a decentralized indexing protocol for querying data on blockchain networks, making it essential for Web3 applications.
Akash Network (AKT)
Akash Network is a decentralized cloud computing platform that provides cost-effective, scalable cloud services. It leverages underutilized cloud resources and has introduced key upgrades to enhance its utility and efficiency.
Numeraire (NMR)
Known for its decentralized hedge fund platform, Numerai uses AI to create, train, and activate trading models for cryptocurrencies. Users can stake NMR tokens to support prediction strategies and share rewards.
Injective Protocol (INJ)
This project is optimized for financial applications, offering high interoperability and features like a decentralized order book. It allows developers to create advanced financial applications and has seen significant upgrades to enhance interoperability and liquidity.
Artificial Liquid Intelligence (ALI)
Developed by Alethea AI, this project uses AI to generate interactive AI-based characters from text descriptions. It also allows the creation of AI NFTs and supports various AI-driven applications.
These projects demonstrate the growing intersection of AI and blockchain, offering innovative solutions across different sectors including finance, cloud computing, and decentralized applications.
The Future of AI-based Coins
As the artificial intelligence (AI) revolution gains momentum, the AI coin market has projections to experience substantial development and innovation. Consequently, the demand for AI-powered products and foundational cryptocurrencies should rise as AI technologies become more adopted across various sectors. Experts believe that AI currencies will play a crucial role in enabling secure and transparent payments within AI ecosystems.
We anticipate that AI and distributed ledger technology will transform industries such as supply chain management, healthcare, and finance. Additionally, the emergence of decentralized AI networks has the potential to challenge existing centralized AI systems.
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