Why ChatGPT’s Success Is Blowing Up Some Cryptocurrencies

The monster success of ChatGPT radiates the world of cryptocurrencies. As Microsoft plans a major investment in OpenAI, several tokens that rely on artificial intelligence have surged.

These last months, generative artificial intelligence, such as ChatGPT, Stable Diffusion or Midjourney, are on everyone’s lips. While students are massively using AI to cheat and hackers are using it to craft phishing emails, Microsoft plans to pump another $10 billion into OpenAI, the startup behind ChatGPT. The American company aims to integrate the chatbot into several of its products, including the Bing search engine, Outlook, Word and Powerpoint.

In the run-up to this massive investment, several cryptocurrencies suddenly took off. As our colleagues from The Block report, nine AI-related cryptocurrencies have recently seen an increase in their value.

Also read: ChatGPT more revolutionary than the metaverse? Bill Gates gives his opinion

The AI ​​boom is affecting cryptocurrencies

At CoinGecko, the aggregator of data related to cryptocurrencies, we realize that the price of certain tokens obviously based on AI has increased by more than 50% in a week. Several projects have even registered a three-digit increase. This is the caseImage Generation AI (ImgnAI). Launched in October 2022, the project allows designing cartoon-like images using a simple chatbot. The help tag related to the initiative took over 700% in a few days. Similarly, the volume of transactions reached an all-time high.

The price of the IMGNAI token over the last 14 days.

On its website, the Image Generation AI team explains that it wants to facilitate the creation of non-fungible tokens (NFTs) by push the limits of creativity » of its users. As part of this ecosystem, the ImgnIA token allows its holders to unlock new art styles/models to create images » and to edit high-resolution images (HD to 4K).

Fetch.ai, a British company that proposes to create an ecosystem where blockchain and artificial intelligence work in osmosis, has also benefited from the renewed interest generated by ChatGPT. Inaugurated in 2017, the project, based on smart contracts, recorded an increase of more than 600% of its token in a few days. The utility token is used to pay the fees to use the various services in the Fetch ecosystem.

download course
The price of the Fecth.ai token during the last 14 days. © CoinGecko

It is clear that investors and speculators are massively interested in these projects to take advantage of the enthusiasm surrounding AI. Note that all these cryptocurrencies have low capitalization. They are far from the colossus of the ecosystem like Bitcoin, Ether, Solana or BNB. Obviously, it only takes a handful of investments to inflate the price of tokens. These sudden market movements are typical for projects with very little liquidity.

A general upswing in cryptocurrencies

These increases occur in a general context of rebound. Despite the cryptocurrency crash, King Bitcoin has been on the rise again over the past few days. The digital currency has been deleted above the $20,000 limit. It is the first time since FTX’s bankruptcy last November. As always, Bitcoin pulled other digital currencies higher in the market. This is the case with Ether, which rose above $1500 for the first time in two months.

bitcoin course
The price of Bitcoin over the past 14 days. © CoinGecko

To explain this unexpected recovery, observers point to several indicators, including the fall in inflation and the increase in certain stock market indices. After difficult months, the world economy appears to be gradually recovering. While traditional stock markets are seeing a bit of a resurgence”the crypto asset industry is experiencing an upswing much more energetic, notes Simon Peters, analyst at eToro. Nevertheless, the expert advises to be careful. At present, there is no indication that the increase will continue in the short term.

Source:

The block

Leave a Comment