As demand for AI tokens surges in the ChatGPT vs. Google dispute, several cryptocurrencies are losing value.
Other cryptocurrencies with non-AI use cases may lose retail and institutional traders due to high expectations for AI tokens.
Some cryptocurrencies are losing value as demand for particular artificial intelligence tokens rises.
The excitement surrounding AI chatbots caused Alphabet Inc., Google's parent company, to experience a market value loss of nearly 8% on February 8, 2023. The traders' anxiety regarding OpenAI's ChatGPT, a competing offering, is what caused Google to sustain such a significant loss.
A number of cryptocurrency tokens in the AI area have taken control of the cryptocurrency market since ChatGPT first appeared on the scene a few days ago. It is already anticipated that the adoption of AI tokens will rise in the months to come as the competition between Google and OpenAI intensifies. Artificial intelligence-based innovations can be improved significantly faster than traditional technology developments. In this environment, traders are thinking about the potential convergence of cryptocurrencies and AI technologies.
The quantity of searches for "crypto AI" has significantly increased since January 2023. As a result, interest is growing in cryptocurrencies that use artificial intelligence.
Google has already announced the impending release of Google Bard, an AI-powered chatbot. Due to the fast rise in demand for AI chatbots like ChatGPT, Google is working to make its ChatGPT replacement available as soon as possible. The Graph (GRT), a cryptocurrency with a market capitalization ranking of 40, has had a value gain of more than four times in the past week, indicating a rise in interest in AI tokens. Big Data Protocol (BDP), a cryptocurrency with a modest market size, saw a tenfold surge in value one week ago.
Given the high expectations for AI tokens, other cryptocurrencies with non-AI use cases may miss out on inbound attention and liquidity from retail and institutional traders. The market's fascination with AI tokens, though, is not certain how long it will last. Memecoins from the forthcoming bull run: Are they AI crypto tokens? Or will it ultimately prove to be a trap?
