The intersection of artificial intelligence (AI) and cryptocurrency has been a topic of interest for many investors in recent years. However, the crypto-AI economy has experienced significant losses in the last few weeks, shedding $730 million in value. The three most prominent AI-driven crypto projects, SingularityNET, Graph, and Fetch, have all suffered double-digit losses against the US dollar over the past 30 days, ranging from 10% to 29.58%. This decline has led to a decrease in interest in crypto-AI projects, with global search trends for “crypto ai” dropping from a score of 100 in February to 22 in the past 90 days.
The rise and fall of the crypto-AI economy can be traced back to February 2023, when the collective crypto AI economy reached a $4 billion milestone, driven by impressive gains among top AI-focused cryptocurrencies following a multibillion-dollar investment by Microsoft in Openai, the creators of Chatgpt. However, the sector has since incurred significant losses, with $730 million wiped off the crypto-AI token economy. The crypto asset SingularityNET (AGIX) lost 29.58% in 30 days and 21.51% this past week. The largest crypto AI asset by market capitalization, Graph (GRT), has suffered a loss of 10.71% in the past month. The second largest AI-centric crypto asset, SingularityNET (AGIX), has fared worse, down 29.58% in the same period. Fetch (FET), the third largest crypto AI token, has seen a 14.36% drop in value over the past 30 days. Most of these losses occurred during the last seven days of trading, coinciding with a general downturn in the broader crypto market. Overall, the crypto tokens associated with artificial intelligence have declined by 7.38%.
The decline in the crypto-AI economy can be attributed to various factors, including the general downturn in the broader crypto market and a decrease in interest in crypto-AI projects. The 24-hour global trade volume for the crypto-AI sector currently stands at $325.58 million, with the cannabis-focused crypto sector being the top performer, having gained 3.89% against the greenback in the past week. Despite the decline in the crypto-AI economy, the future of the intersection of AI and cryptocurrency remains uncertain, and many investors are still optimistic about its potential.
As the crypto-AI economy continues to fluctuate, it is essential for investors to approach this sector with caution and conduct thorough research before making any investment decisions. While the potential for AI and cryptocurrency to revolutionize various industries remains high, it is crucial to consider the risks involved and the potential for losses. As the market continues to evolve, it will be interesting to see how the crypto-AI economy develops and whether it can recover from its recent losses.
