Narrative Spotlight: Crypto AI
PLUS: Our AI Crypto Watchlist 🔥
Hey Everyone,
each month, we share the investing ideas within a promising narrative.
Narratives are trending ideas and beliefs that influence how people see and value tokens.
They have the potential to impact investor sentiment, market trends, and even the adoption of new technologies.
These narratives have driven where money goes in the crypto market since the beginning.
This month’s narrative, it’s Crypto AI.
Let’s dive in!
The Basics
AI-related tokens are surging on Nvidia’s impressive earnings report.
The giant chipmaker company reported revenue of $22.1 billion, exceeding Wall Street’s projection of $20.40 billion.
In response to the news, many AI-related tokens are surging:
SingularityNet +32.5%
Fetch AI +13%
Render’s 19,5%
But this is nothing new…
Since the launch of ChatGPT in November 2022, the AI narrative have gained attention in the tech industry.
According to Ark Invest, AI should increase the productivity of knowledge workers more than 4-fold by 2030 and the global labor productivity ~$200 trillion.
This interest has spilled over into the crypto space, bringing attention to AI-related cryptocurrencies.
In fact, AI was by far the most popular crypto narrative in 2023, accounting for 11.3% of crypto narratives’ interest.
AI and Blockchain Synergies 🤝
Progress in AI will only increase demand for crypto solutions.
Using blockchain infrastructure, AI innovation can be democratized instead of concentrated, making the products better & safer for consumers, while AI agents can process transactions and store/exchange value on behalf of users.
Here are some examples of AI and Blockchain Synergies:
Financial services: IBM highlights that blockchain and AI technologies are boosting trust and speeding up multiparty transactions. In the context of the loan process, applicants can grant consent to access their personal records stored on a blockchain, enabling trust in the data and allowing AI-powered automated processes to evaluate the loan application quickly.
Improved data quality: AI algorithms rely heavily on high-quality data to generate accurate predictions and insights. Blockchain technology can help improve the quality of data by ensuring that it is accurate, up-to-date, and tamper-proof. This is especially important in industries like healthcare and finance, where the quality of data can have a significant impact on decision-making.
Data Privacy: Another area where AI and Blockchain can create synergy is in the field of data privacy. With the rise of big data, there are growing concerns about how data is collected, stored, and used. AI can help to analyze this data and identify patterns and trends, but there are concerns about the privacy of this data. By using Blockchain to create a secure and transparent record of data usage, it may be possible to address these concerns and create a more trustworthy system for the collection and analysis of data.
Creation and Running of DAOs: One of the main advantages of combining AI and Blockchain is the potential to create decentralized autonomous organizations (DAOs). These are organizations that are run entirely by software, without the need for human intervention. By using AI to make decisions and Blockchain to ensure the transparency and security of those decisions, DAOs can create a new paradigm for how organizations are run. This could lead to more efficient and effective decision-making, as well as greater transparency and accountability.
Predictive Analytics: AI can be used to extract insights from the vast amounts of data stored on the blockchain, enabling predictive analytics to be performed. For example, AI could analyze data about the transaction history of a cryptocurrency to predict future price movements or analyze data about a company’s supply chain to predict future demand for its products.
Smart Contracts: Smart contracts are self-executing contracts with the terms of the agreement between buyer and seller being directly written into code. AI can help to enhance smart contracts by enabling them to automatically adapt to changing conditions or execute certain conditions based on data stored on the blockchain. For example, an AI-powered smart contract could adjust the terms of an insurance policy based on data about the performance of the insured asset, such as a vehicle or machine.
Fraud Detection: Blockchain’s immutability and transparency make it an ideal platform for detecting and preventing fraud. AI can be used to analyze blockchain data in real-time to detect unusual patterns of behavior, such as a sudden influx of transactions or a large transfer of funds. This can help to identify potential fraud or cyber-attacks and enable proactive measures to be taken.
Supply Chain Management: AI can be used to enhance supply chain management on the blockchain by enabling real-time tracking of goods and services. AI-powered sensors can be used to collect data about the location, condition, and quality of goods as they move through the supply chain, with this data being stored on the blockchain. This can help to improve supply chain transparency and reduce the risk of fraud or counterfeiting.
Insight into Cryptocurrency Monetization: Cryptocurrency traders rely heavily on a variety of indicators. However, manually producing reliable signals may be impossible given the ubiquity of unstructured data in the digital world. Before being evaluated for investing insights, large amounts of data must be clean, relevant, and correct. Data scientists and engineers can use AI to create strategies for traders to obtain relevant and clean data on a platform. Natural language processing techniques can classify and extract data based on criteria like currency name, document kind, currency founder, and more. Data scientists can utilize AI to give accurate trading information in a dashboard or interface that non-technical traders or investors can understand. Investors and traders can then use the knowledge to increase their earnings.
Accurate Cryptocurrency Market Predictions: When the number of investment options expands, manual inquiry, extraction, and analysis approaches are no longer effective in discovering investments and buy/sell signals. AI has become a popular tool in the financial industry, and when combined with blockchain, it becomes even more effective. Larger financial firms, such as Goldman Sachs, Citigroup, and Barclays, have already begun incorporating AI into their workflows, while small and medium-sized businesses follow suit.
Our Watchlist for the weeks ahead :
In today's issue, we have selected 7 high-quality AI tokens we’re paying attention to (3-20x potential).
DeepBrain Chain ($DBC)