Why ChatGPT’s Success Is Exploding Some Cryptocurrencies

ChatGPT’s monster success lights up the world of cryptocurrencies. As Microsoft plans to invest heavily in OpenAI, several AI-based tokens have surged.

These last months generative artificial intelligenceChatGPT, Stable Diffusion or Midjourney are on everyone’s lips. As students use AI to cheat and hackers use it to craft phishing emails, Microsoft plans to pour another $10 billion into OpenAI, the startup behind ChatGPT. The American company aims to integrate the chatbot into a number of products, including the Bing search engine, Outlook, Word and Powerpoint.

Ahead of this massive investment, several cryptocurrencies suddenly took off. According to our colleagues from The Block, Nine cryptocurrencies related to AI Recently, their value has increased.

Also read: ChatGPT more revolutionary than metaverse? Bill Gates gives his opinion

The AI ​​boom is affecting cryptocurrencies

At CoinGecko, a cryptocurrency data aggregator, we understand that the price of certain tokens that are clearly based on artificial intelligence has increased by more than 50% in one week. A few projects even registered triple-digit growth. This is the caseImage Generation AI (ImgnAI). Launched in October 2022, the project makes it possible to design cartoon-like images using a simple chatbot. The utility token associated with the initiative exceeded 700% in a few days. Similarly, the volume of transactions reached a record high.

IMGNAI token price in the last 14 days.

On its website, the Image Generation AI team explains that it wants to facilitate the creation of non-fungible tokens (NFTs). transcends the boundaries of creativity » its users. As part of this ecosystem, the ImgnIA token allows its holders unlock new art styles/models to create images » and for editing high definition images (HD – 4K).

Fetch.ai, a British company that proposes to create an ecosystem where blockchain and artificial intelligence work in osmosis, has also benefited from the renewed interest created by ChatGPT. Launched in 2017, the smart contract-based project recorded a token increase of over 600% in a matter of days. The utility token is used to pay for the use of various services in the Fetch ecosystem.

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Fecth.ai token price in the last 14 days. © CoinGecko

Clearly, investors and speculators are taking massive interest in these projects to capitalize on the hype surrounding AI. Note that all of these cryptocurrencies are available low capitalization. They are far from the ecosystem giants like Bitcoin, Ether, Solana or BNB. Obviously, only a few investments are needed to increase the price of the tokens. These sudden market movements are typical for projects with very little liquidity.

A general rise in cryptocurrencies

These increases occur in the context of a general rebound. Despite the cryptocurrency crash, King Bitcoin has been on the rise again in the past few days. Digital currency is being ironed out Over the $20,000 limit. This is the first time since the bankruptcy of FTX last November. As always, Bitcoin has outperformed other digital currencies in the market. This is the case with Ether, which has risen above $1,500 for the first time in two months.

bitcoin exchange rate
Bitcoin price in the last 14 days. © CoinGecko

Observers point to several indicators to explain this unexpected rise, including lower inflation and the rise of certain stock market indices. After difficult months, the world economy seems to be gradually recovering. while traditional stock markets see some revival”The crypto-asset industry is experiencing a resurgence more energetic, notes eToro analyst Simon Peters. However, the expert advises caution. At this stage, nothing suggests that the rise will continue in the short term.

Source:

Block

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