According to Bloomberg, the artificial intelligence (AI) trade in the cryptocurrency market has experienced a significant downturn after showing substantial gains earlier in the year. This decline contrasts sharply with the ongoing strength of AI-related investments in the equity market.
Tokens associated with AI-themed blockchains, such as Near Protocol, Internet Computer, Bittensor, and Render Network, have seen consistent declines since March, dropping more than 50% from their 2024 peaks. These tokens are typically issued by early-stage projects aiming to integrate blockchain technology with AI services, a combination whose practical utility remains uncertain. For example, Render Network aims to create a decentralized marketplace for buyers and sellers of computing power for AI processing, utilizing blockchain for payment and data verification.
The initial surge in these tokens was driven by the excitement surrounding AI advancements like OpenAI’s ChatGPT and the rapid increase in Nvidia’s stock value. These tokens were particularly popular among risk-seeking traders in South Korea. However, the weekly global trading volumes for these tokens have significantly decreased from their peak in the first quarter of this year, falling to just $2 billion in early August, as noted by Kaiko.
