ChatGPT launch boosted AI crypto assets this year.
The recent surge in Artificial Intelligence (AI) has led to significant profits for related companies in the past few quarters. Nvidia Corporation (NASDAQ: NVDA) has already seen a stock market rally of over 168% YTD, reaching a valuation of around $1 trillion. However, AI-related crypto has experienced significant volatility due to the speculative nature of digital assets. The top AI and big data crypto tokens have reached a market capitalization of approximately $5 billion and a total daily traded volume of $792 million.
ChatGPT as the Catalyst for AI-Crypto Breakout
According to a study by the Blockchain Research Lab in Hamburg, Germany, the launch of ChatGPT by OpenAI Foundation significantly contributed to the rise of AI-related crypto assets. ChatGPT gained global popularity within a few days of its launch, although the parent company has not released any official statistics on current users.
“This paper demonstrates the ChatGPT launch had a significant impact on the performance of AI-related crypto-assets, despite the overall cryptocurrency market being in a bearish state and risk-averse investor appetites. Using synthetic difference-in-differences, we found average price increases of at least 10.7% (35.5%) in the one-month (two-month) period following the launch,” the researchers concluded.
According to market data provided by Coinmarketcap, some of the top AI projects include The Graph (GRT), SingularityNET (AGIX), Render (RNDR), and Fetch.ai (FET). However, the rise of ChatGPT and other related products has not prevented AI-related crypto assets from ongoing regulatory scrutiny in the United States.
- Apple presented new products at WWDC.
- Atomic Wallet compromised, $35M drained from users.
- Japan warns OpenAI about unauthorized user data collection.
Notably, the United States Securities and Exchange Commission has recently intensified its crackdown on crypto-related projects, with Binance and blockchain Global Inc (NASDAQ: COIN) in the loop. The SEC has stood firm that most of the crypto projects are unregistered securities with only Bitcoin being an exception.
Nonetheless, the crypto market has been significantly adopted as investment products or for payment services. For instance, the European market recently adopted the Markets in Crypto Assets (MiCA) regulation to enable the safe adoption of the nascent technology. Additionally, Hong Kong has adopted the use of crypto assets, which has significantly increased crypto traded volume in the Eastern Asian markets.
As a result, AI-related coins are expected to pick up as crypto use rises in tandem with the adoption of artificial products.
Side Notes
According to German researchers, AI-focused exchange-traded funds have been on the rise even before the launch of ChatGPT, thereby depicting that investors have been bullish on the artificial intelligence market post-Covid-19. Furthermore, Alphabet Inc Cl A (NASDAQ: GOOGL) has also introduced its AI-focused products through Google.
