PriyankaDespite current market downturns, experts remain optimistic about the growth trajectory of AI-crypto projects.
Crypto-related artificial intelligence initiatives are expected to overcome market fluctuations and exceed their current $25 billion valuation. Alice Liu, the research lead at CoinMarketCap, conveyed to DL News that this market segment still possesses significant potential for expansion.
On Tuesday, tech stocks experienced a sharp decline, led by chipmaker Nvidia, which saw $250 billion wiped from its market capitalization. This event has reignited concerns that the enthusiasm surrounding AI might be an unsustainable bubble. However, Liu disagrees with this assessment, stating, “I wouldn’t call this a bubble.” She emphasized that Nvidia’s stock drop does not diminish the advancements made in AI projects.
The sector’s future hinges on these projects’ capacity to pinpoint genuine use cases and the practical utility of crypto and blockchain within the AI domain, rather than treating them as mere trendy concepts. Backed by projections suggesting that the combined capabilities of crypto and AI could contribute an additional $20 trillion to the global economy by 2030, investors have already funneled over $750 million into the sector this year.
Interest in AI-crypto projects has surged dramatically, with many projects experiencing nearly sixfold growth over the past year. Leading cryptocurrencies like Bitcoin and Ether have also seen substantial gains, rising by 103% and 46%, respectively.
Cosmo Jiang, a portfolio manager at Pantera Capital, indicated to DL News that there will be a plethora of opportunities at the intersection of AI and crypto. The hedge fund plans to invest over $200 million in this convergence by 2030.
In a strategic move, Bitcoin miners have diversified their operations by leasing out processing power to generative AI developers. VanEck has endorsed this approach, projecting it could yield $14 billion in profits. However, some critics argue that miners might be losing focus on their primary objectives.
Blockchain technology also holds promise for enhancing data verification and providing decentralized tools essential for training large language models. Le Shi, head of trading at Auros, believes that the market’s future success will depend significantly on the performance of VC-backed startups and broader macroeconomic factors, including the upcoming US election.
Shi told DL News that these combined factors could create a more favorable environment for AI-powered crypto solutions to thrive.
