Binance Research: AI Tokens Outperform BTC and ETH with up to 650% Yearly Gains!

Binance Research found that AI tokens had greater gains last year compared to BTC and ETH. Additionally, funding for AI-based Web3 projects has significantly increased.

Binance’s AI tokens outperform BTC and ETH with impressive yearly gains of up to 650%.

Source: AdobeStock / Limitless Visions

In exciting news for the blockchain and financial world, Binance Research has discovered that artificial intelligence (AI) coins in 2023 saw significantly larger gains compared to crypto giants Bitcoin and Ethereum. This development comes as funding for AI-related Web3 projects has also experienced a surge.

According to a report by Binance Research, AI tokens benefited from a rise in interest in the sector. Over the past quarter and the last year, AI tokens “experienced a significant surge” and outperformed the broader market. They ranked as the second-best-performing category over the last three months.

Even more impressive is the fact that AI tokens outperformed BTC and ETH in 2023. By the end of the year, BTC saw a 150% gain, while ETH saw 44%. In comparison, the top five AI coins by market capitalization achieved gains ranging from 200% to a staggering 650% in 2023, significantly outperforming the two leading cryptocurrencies.

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However, Binance Research emphasizes that BTC and ETH have much larger market capitalizations compared to AI tokens, so the smaller percentage gains are not surprising. The comparison is simply meant to showcase the recent strong performance and growing interest in AI coins.

AI Reshaping the Crypto Industry: The Rise of the Machines

The massive surge in AI token prices and Google search trends clearly indicate a significant increase in interest in AI over the last few months. Factors such as AI chatbots, new AI tools, and media coverage have contributed to this rise, resulting in AI starting to reshape the crypto landscape.

Apart from the impressive performance of AI tokens, the convergence of AI and crypto has led to practical use cases and continuous innovation in the sector. Examples of existing use cases emerging from the AI-crypto convergence include AI-powered data analytics platforms, interactive consumer-facing applications, decentralized physical infrastructure networks (DePIN), and Zero-Knowledge Machine Learning (ZKML).

Binance Research concludes that AI has been gaining significant traction, attracting sustained interest from investors and retail as AI app adoption rises rapidly.

AI Tokens for Web3 Projects: Funding Surges to Nearly $300M in 2023

Funding for AI-related Web3 projects experienced a tremendous jump in 2023, reaching a staggering $298 million. This amount is more than the collective funding raised for AI projects from 2016 to 2022, which totaled $148.5 million.

Compared to other Web3 sectors, AI projects’ funding ranked 7th, surpassing non-fungible tokens (NFTs) and decentralized autonomous organizations (DAOs) but falling behind infrastructure. The explosive growth in AI funding within the Web3 industry is evident from the $298 million figure received in 2023, which is double the total funding of the previous seven years.

Despite the impressive funding and performance of AI projects, the mass adoption of AI has not been achieved yet. AI-powered crypto projects are still in early development and/or are created for a smaller user base. However, the increasing number of tangible use cases is an encouraging trend that bodes well for long-term growth.

Q&A:

Q: What factors have contributed to the surge in interest in AI tokens? A: Factors such as AI chatbots, new AI tools, and media coverage have contributed to the rise of interest in AI tokens.

Q: Are AI tokens outperforming Bitcoin and Ethereum a long-term trend? A: While AI tokens have shown exceptional performance in 2023, it is important to note that BTC and ETH still have much larger market capitalizations. Long-term trends will depend on various factors, including technological advancements and market conditions.

Q: What are some practical use cases emerging from the AI-crypto convergence? A: Practical use cases include AI-powered data analytics platforms, interactive consumer-facing applications, decentralized physical infrastructure networks (DePIN), and Zero-Knowledge Machine Learning (ZKML).

Q: How much funding did AI-related Web3 projects receive in 2023? A: AI-related Web3 projects received an impressive $298 million in funding in 2023, which is more than the collective funding raised for AI projects from 2016 to 2022.

Future Outlook:

As AI continues to gain traction in the crypto industry, we can expect continuous innovation and the emergence of new use cases. With increasing interest from investors and retail, AI tokens have the potential for further growth. However, it is important to carefully analyze market conditions and investment opportunities before making any decisions.

Investment Recommendations:

Based on the strong performance of AI tokens in 2023 and the surge in funding for AI-related Web3 projects, investing in AI-related cryptocurrencies and projects could be a promising long-term investment strategy. However, as with any investment, thorough research and careful consideration of market conditions and risks are essential.

Reference List:

1. Binance Research
2. Expect Bitcoin in 2024
3. Binance Coin (BNB) Blazes Ahead – Predictions Point to New All-Time Highs in First Half of 2024
4. 5100 Next Major Ethereum Targets According to Model
5. Mount Sinai Medical Researchers Claim ChatGPT Ready to Practice Medicine
6. The Future of NFTs is Bright, Says Rari Foundation Strategy Head
7. SEC Blasts Purportedly Decentralized DAOs in $17m Settlement with BarnBridge

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