According to a report by Binance Research, artificial intelligence (AI) crypto coins outperformed both Bitcoin (BTC) and Ethereum (ETH) in terms of gains in 2023. Here are the key highlights:
Strong Performance vs BTC and ETH
By the end of 2023, BTC had gained 150% while ETH saw gains of 44%. In contrast, the top five AI coins by market capitalization saw gains ranging from 200% to 650%, significantly higher than BTC and ETH.
Small Market Cap Compared to BTC and ETH
Despite outperforming BTC and ETH in 2023, AI tokens have a much smaller market capitalization, demonstrating massive room for growth.
Advances in AI-Crypto Convergence
Interest in AI has reshaped the crypto landscape, influencing the development of AI-related crypto applications like AI-powered data analytics platforms, consumer applications, decentralized infrastructure networks, and Zero-Knowledge Machine Learning.
Growing Support for AI in Crypto
AI’s role in the crypto industry is gaining traction with rising app adoption and sustained investor interest. Nearly $300 million was raised for AI-related Web3 projects in 2023, more than the collective $148.5 million raised from 2016 to 2022.
Early Stage Despite Rising Interest
While AI projects secured substantial funding in 2023, many remain in early stages with small user bases. Mass adoption is yet to be achieved.
The report concludes that an increase in tangible AI use cases bodes well for the long-term growth of the sector.
Source: Cryptonews via Binance Research