The Emergence of a Flourishing Cryptocurrency Subsector in 2024
The combination of innovations from both artificial intelligence (AI) and web3 could result in the emergence of a flourishing cryptocurrency subsector in 2024, according to analysts. Both AI and crypto are quickly maturing, and the emerging use-cases and possibilities enabled by both technologies are massive.
AI Agents on the Blockchain
One area of focus is the development of AI agents, which combine elements of AI and web3. These on-chain bots can assist in processing transactions and exchanging value on behalf of human users. AI agents have the potential to become a primary category of users on the blockchain, with applications like verification management that use zero-knowledge learning technologies.
A Symbiosis of AI and Web3
The integration of AI and web3 has the potential to improve privacy and data ownership, safeguard human-generated content, and provide an alternative to large-scale cloud development. By combining decentralized crypto with centralized AI, we can create an AI that evolves safely and serves humanity without being dominated by special interests. Web3 innovations rooted in decentralization, such as zero-knowledge proofs, can enable privacy-enhanced machine learning.
AI-Generated Metaverses and Web3 Gaming
In 2024, there will be a significant increase in AI-generated metaverse and web3 gaming content. Generative AI will play a critical role in shaping this digital frontier. Venture capital firms are investing heavily in metaverse-based startups that feature a strong AI component. Web3 gaming has the potential to onboard billions of users onto the blockchain.
AI-Related Tokens Rally in 2023
AI project tokens have outperformed during the bear market since early 2023, indicating belief and momentum in the merge of AI and blockchain. Cryptocurrencies associated with recent developments in AI have already posted triple-digit gains throughout 2023. Tokens like FET and RNDR have seen significant growth, with FET gaining over 590% and RNDR gaining over 870% in the past year.
Hot Take: The Future of AI and Web3
The collaboration between AI and web3 is expected to usher in a new era of digital innovation. While the market cap of tokens associated with this subsector is still small compared to major digital assets, the promising performance of AI-related tokens suggests investor anticipation for the transformative potential of AI and blockchain convergence.
Theon Barrett shines as a distinguished crypto analyst, accomplished researcher, and skilled editor, making significant strides in the field of cryptocurrency. With an astute analytical approach, Theon brings clarity to intricate crypto landscapes, offering insights that resonate with a broad audience. His research prowess goes hand in hand with his editorial finesse, allowing him to distill complex information into accessible formats. Theon’s work serves as a guiding light for both experienced enthusiasts and newcomers, providing well-researched perspectives that empower informed decision-making in the ever-evolving realm of cryptocurrencies.
