Binance Research Finds AI Tokens Outperform Bitcoin and Ethereum
Binance Research has discovered that in 2023, artificial intelligence (AI) coins saw greater gains compared to bitcoin and ethereum. The surge in interest in the AI sector contributed to the significant rise in AI tokens, which outperformed the broader market. AI tokens ranked as the second-best-performing category over the last three months and achieved gains ranging from 200% to 650% in 2023, surpassing BTC and ETH. However, Binance Research emphasized that the larger market capitalizations of BTC and ETH explain their smaller percentage gains. This strong performance of AI tokens reflects the growing interest in AI within the crypto industry.
AI Reshaping Crypto Industry
The increasing prices of AI tokens and Google search trends indicate a rise in interest in AI over recent months. This has led to the integration of AI into the crypto landscape, resulting in continuous innovation within the sector. Practical use cases of AI-crypto convergence include data analytics platforms, consumer-facing applications, decentralized physical infrastructure networks (DePIN), and Zero-Knowledge Machine Learning (ZKML). Binance Research concluded that AI has gained significant traction, attracting sustained interest from investors and retail.
AI Tokens for Web3 Projects Raise Nearly $300M in 2023
Funding for AI-related Web3 projects reached $298 million in 2023, surpassing the total funding raised from 2016 to 2022. Despite a general reduction in funding across sectors, funding for US startups working on AI surged by 230%. The explosive growth of funding for AI within the Web3 industry is evident from the $298 million figure, which is double the total funding of the previous seven years. In terms of funding ranking, AI projects placed 7th among other Web3 sectors, ahead of non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs).
Hot Take: AI Tokens Demonstrate Strong Performance and Interest in AI
According to Binance Research, AI tokens have outperformed bitcoin and ethereum, reflecting the increasing interest in AI within the crypto industry. The rise in AI token prices and funding for AI-related projects indicate a growing recognition of the potential of AI in shaping the future of cryptocurrencies. As the adoption of AI applications continues to increase, it is attracting sustained interest from investors and retail. The integration of AI into the crypto landscape has resulted in continuous innovation, with practical use cases emerging across various sectors. This trend bodes well for the long-term growth and development of both AI and the crypto industry as a whole.
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