- Artificial Intelligence (AI) cryptocurrencies and stocks have jumped in 2023.
- SingularityNET, SingularityDAO, Fetch.ai, and Alithea Liquid Intelligence (ALI) tokens have surged.
Cryptocurrencies have made a strong comeback in 2023, with Bitcoin moving above $23,000. Their total market cap has soared to over $1 trillion. This recovery, which is in line with that of stocks, happened as signs emerged that inflation was easing. However, a closer look shows that some cryptocurrencies are having a better year than BTC. For example, AGIX has jumped by 650% in the past 30 days.
Artificial Intelligence (AI) tokens soar
The main reason why SingularityNET’s AGIX and SDAO, Ocean Protocol’s (OCEAN), and Artificial Liquid Intelligence (ALI) have soared is because of their exposure to artificial intelligence. Other AI coins that have done well are The Graph, Fetch.ai, and Verasity.
AI has made a lot of headlines in 2023. Earlier this year, OpenAI unveiled ChatGPT, a conversational platform that answers long-form questions. Shortly thereafter, Microsoft announced that it was funding OpenAI in a $10 billion deal.
And on Tuesday, Microsoft unveiled its AI products for Microsoft Edge and Bing. Google, on the other hand, is working on its own AI search product known as Bard. Baidu is also building its AI solution.
Therefore, investors have been piling in AI assets. For example, Microsoft’s stock price has risen by over 5% this week while C3.ai stock has more than doubled this year. Venture capital firms have also announced several AI announcements. For example, Mark Cuban invested in Alethea, an AI company that created the Artificial Liquid Intelligence token.
SingularityDAO (SDAO), SingularityNET, and Fetch.ai (FET) prices have risen because of their AI tools. Similarly, The Graph, Ocean Protocol, and Jasmy have risen because of their focus on big data, which is essential in AI.
Reasons to be cautious
While these coins have jumped, there is need for caution since the rally seems like hype and not based on fundamentals. Indeed, as I wrote on Tuesday, the fear and greed index, has moved above the extreme greed level.
Historically, greed pushes investors to do irrational things. For example, in late 1990s, they were investing in worthless companies with a dot com suffix. It turned out to be the dot com bubble, which cost them billions of dollars.
Most recently, in 2021, most investors allocated cash to metaverse tokens like Decentraland’s MANA and The Sandbox’s SAND. At the time, everyone was talking about the metaverse. These tokens were some of the worst performers in 2022.
