Some of the AI altcoins saw increases of more than 100% in just a few days.
In recent weeks, the hype around AI altcoins or cryptocurrencies alongside AI (artificial intelligence) has grown steadily. Many of these altcoins have seen massive gains.
With the explosion in popularity of artificial intelligence with the advent of ChatGPT, the topic of AI is on everyone’s lips. The hype is also noticeable in the cryptocurrency market and many cryptocurrencies that brand themselves with AI have seen strong increases in value.
These are protocols that use artificial intelligence in various ways or provide the infrastructure that promotes the AI industry. These protocols have often been known for several months or even years, but are now becoming the focus of altcoin fans with the hype surrounding AI.
AI Altcoins: Just Hype or Do They Have Long-Term Benefits?
Many altcoins have grown through hype phases and investors only learn about the benefits of this hype later. As such, it is nothing new that certain types of altcoins are gaining prominence, as well as price increases, due to external events. However, there is always the question of whether AI Altcoins or AI cryptocurrencies have a long-term benefit and whether the trend can be sustainable for months and years to come.
On the one hand, many of the AI altcoins that have seen a lot of hype in recent weeks have been on the market for months and years. These cryptocurrencies have been using the AI brand for years, hoping to have a positive effect on investors.
On the other hand, the current increases do not always mean an all-time high for these AI Altcoins. Of course, this is also due to the fact that we are in a bear market, and prices in the fall of 2021 were probably much higher. A token like AGIX of the SingularityNET protocol, though, once had a price of more than $1 right after the project’s start, which was an all-time high at the time.
Based on these observations, it can be said that the price increases are mainly due to current hype. However, even before the hype, they were solid projects.
Can the Hype Become a Long-Term Trend?
The artificial intelligence industry has been working on innovative projects for years. The release of ChatGPT has now generated quite a stir. This caused the price of AI altcoins to rise.
The history of hype in the cryptocurrency market indicates that these massive increases should be short-lived. However, AI cryptocurrencies could continue to play an important role in the future. Investors, however, need to dig into individual projects and not just follow the short-term hype.
By Audy Castaneda
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