In a span of less than two months, the market capitalization of 74 artificial intelligence (AI)-related cryptocurrencies have experienced a significant downturn. After reaching a remarkable valuation of $4 billion, the crypto AI economy has faced losses totaling $730 million. The three leading AI-driven crypto projects have all encountered double-digit losses, with decreases between 10% and 29.58% against the U.S. dollar in the last month.
Declining interest in crypto AI projects
Various sources of data indicate a diminishing interest in and valuation of crypto-AI projects. Google Trends’ global search data reveals that the term “crypto ai” reached its peak in early February 2023, with a score of 100. However, the score has since dropped to a low of 22 in the past 90 days. The top five countries currently searching for “crypto ai” include Slovenia, the Netherlands, Cyprus, Lebanon, and Nigeria.
In February, the total cryptocurrency AI economy achieved a milestone of $4 billion, propelled by significant gains among leading AI-centric cryptocurrencies. This surge followed a multibillion-dollar investment by Microsoft in OpenAI, the creators of ChatGPT. Since then, the sector has experienced considerable losses. According to data from cryptoslate.com, $730 million has been erased from the AI token economy’s value.
Graph (GRT), the largest crypto AI asset by market capitalization, has seen a 10.71% loss in the past month. SingularityNET (AGIX), the second largest AI-focused crypto asset, has fared even worse with a 29.58% decrease in the same time frame. Fetch (FET), the third largest AI token, has experienced a 14.36% drop in value over the past 30 days. Most of these losses occurred during the last week of trading, aligning with a general decline in the broader cryptocurrency market.
Collectively, the crypto tokens associated with artificial intelligence have experienced a 7.38% decline. The past week has been particularly challenging, with a recorded drop of 15.70%. As of now, the 24-hour global trade volume for the cryptocurrency AI sector stands at $325.58 million. In contrast, the cannabis-focused crypto sector has emerged as the top performer, with gains of 3.89% against the U.S. dollar in the past week, as per data from cryptoslate.com.
Source: https://www.cryptopolitan.com/decline-in-crypto-ai-economy-market/