The Rollercoaster Ride of AI-Based Cryptocurrencies in 2023
Date: 2023-09-11 Author: Dima Zakharov Categories: IN WORLD
The year 2023 has proven to be a tumultuous journey for cryptocurrencies based on artificial intelligence (AI). These digital assets, once the darlings of the crypto market, have experienced a significant decline in value, leaving investors and enthusiasts alike wondering about their future. In this article, we'll explore the highs and lows of AI-based tokens in 2023, shedding light on the most talked-about developments in this space.
The Rise and Fall:
AI-driven cryptocurrencies have seen a remarkable decline compared to their early 2023 highs. As of now, the total market capitalization of this segment stands at $2.28 billion, marking a substantial decrease of approximately $1.72 billion since February 2023.
Last week, eight out of the top ten largest AI-focused cryptocurrencies faced losses. Notably, the crypto asset Numeraire (NMR) plummeted by a staggering 37.47%.
Graph (GRT), the leader in the AI cryptocurrency hierarchy, saw a decline of 2.62%, while the second-largest AI token experienced a 5.46% drop over the same period. This week, two tokens, Dkargo and Phala, showcased noteworthy gains, rising from 1.27% to 2.05% against the US dollar.
A Broader Perspective:
Looking at a broader spectrum of AI-based cryptocurrencies over the past seven days, there has been a collective slump of 5.74%. Analyzing data from the crypto firm Kaiko, it's evident that trading volumes for AI-focused cryptocurrencies significantly dwindled throughout August.
Despite a somewhat shaky launch of Worldcoin in late July, weekly trading volumes for AI-related tokens remained modest in August, as reported by Kaiko. The bulk of trading volume spikes for AI-related coins occurred in January and February 2023.
