The combination of innovations in artificial intelligence (AI) and web3 could lead to the emergence of a thriving cryptocurrency subsector in 2024, according to analysts.
“Both AI and cryptocurrency are maturing rapidly, and while the potential of artificial intelligence and blockchain integration remains largely uncertain today, the new use cases and possibilities enabled by both technologies are enormous,” Nansen analyst Sandra Leow told The Block. He said.
CEO Ryu emphasized the development of AI agents, a field that combines elements of AI and Web 3. She highlighted how these on-chain bots can help process transactions and exchange value on behalf of human users. “We can foresee a world where AI agents become a major category of blockchain users, some examples of which include verification management applications using zero-knowledge learning techniques like Modulus Labs,” Leow added.
Symbiosis of AI and web3
According to Gemini’s 2024 Cryptocurrency Trends report, the integration of AI and web3 has the potential to improve privacy and data ownership, protect and identify human-generated content, and provide an alternative to large-scale cloud development. .
The report identified opportunities for symbiosis between the two technologies. The report states, “The weaknesses of centralized AI can be mitigated by decentralized cryptocurrencies, which will lead to AI that can evolve safely and provide powerful and beneficial functions that serve all of humanity without being dominated by special interests.” “You can do it,” he said.
Gemini analysts added that web3 innovations based on decentralization principles, particularly zero-knowledge proofs, have the potential to enable privacy-enhanced machine learning. “AI can enable the cryptocurrency sector to move beyond its niche status and realize its potential to become a practical, everyday tool for equitable and democratic participation in technology, finance, and more,” the report added.
Gemini’s Crypto-AI Index based on major artificial intelligence-related tokens.
As generative AI becomes more sophisticated, deepfakes will undoubtedly proliferate, and identifying those created by humans rather than AI will become important. In a report by Gemini, Serotonin CEO Amanda Cassatt said that her own company is observing an increase in projects related to provenance tracking and digital content attribution. She added Cassatt: “With AI’s asymmetric ability to generate more content than humans can process, we will soon be assuming content is fake and relying on on-chain proof for verification.” Yes.
AI-generated metaverse and web3 games
Brian Rose, CEO of London Real Ventures, predicts a significant increase in AI-generated metaverse and web3 game content by 2024.
He told Block that generative AI will play a key role in shaping this digital frontier, noting that his venture capital firm has invested in more than 20 Metaverse-based startups, more than half of which have strong AI components. added.
“At London Real Ventures, we believe that web3 games will bring 1 billion users to blockchain in the next year. And since AI will be responsible for building 99% of this metaverse, 2024 will see not only a bull market, but also the integration of AI and AI. It will happen. web3 will be a game changer,” added Rose.
AI-related token rally in 2023
Leow pointed out that there was “strong performance of AI project tokens during the bear market in early 2023.” She said this shows that there is sufficient belief and momentum in the burgeoning integration of artificial intelligence and blockchain.
Cryptocurrencies tied to recent AI developments are already entering the new year with triple-digit gains throughout 2023. “The rally in the AI cryptocurrency sector is influenced by multiple factors, including growing public interest in AI, technological advancements within the sector, and the continued development of AI-focused blockchain projects,” Jeff Fang, co-founder of Sei Labs, told The Block. “He said.
Fetch.ai’s native cryptocurrency, FET, is up more than 590% over the past year. Fetch.ai focuses on using AI and machine learning to automate business tasks, especially in the areas of data processing and trading.
Another AI-related cryptocurrency token that is outperforming the market, Render is a platform that helps artists access computing power to render generative AI works. RNDRthe platform’s native cryptocurrency, has gained more than 870% over the past year.
Render prices have risen this year. Image: The Block’s pricing page.
Although many analysts believe that the collaboration between AI and web3 will usher in a new era of digital innovation, the market capitalization of tokens associated with this subsector is still small compared to major digital assets. However, the recent promising performance of AI-related tokens suggests investor expectations that the convergence of AI and blockchain technology has the potential to transform entire industries.
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