A recent Coinbase report notes that the perceived value of a number of AI tokens is overvalued, leading to concerns about their sustainability.
Coinbase research analyst David Han emphasized that the recent price spikes observed in these tokens may be driven by hype rather than genuine utility or usage. .
Proliferation of AI-related crypto projects raises questions
According to data from CoinGecko, AI-related crypto projects have soared to a total of $26 billion this year. A significant portion of this rise, about 30%, occurred in his single day and coincided with the rise in NVIDIA stock.
Since the beginning of this year, AI tokens such as Akash and Render have experienced significant gains, rising 146% and 99% respectively, outpacing Bitcoin's 54% rise. Despite this impressive increase, Mr. Han pointed out that the future outlook for most of these projects remains uncertain.
The report noted that AI tokens typically benefit from the overall bullish sentiment in the crypto market and the prevalence of AI-related news. However, Han stressed that the current focus on AI tokens may be overstated.
He said widespread attention to the AI industry may have inflated the perceived value of many AI tokens, and that these coins lack sustainable demand drivers in the short to medium term. He said that there is a possibility that
Han also highlighted the specific challenges faced by AI tokens like Akash Network. The company operates similarly to tech giants like Amazon and Google, by leveraging users' computing power for cloud computing in exchange for payments, and usage is on the rise. However, there were challenges such as the potential demand and decreasing supply of Akash Network.
Additionally, he suggested that such projects need to reconsider their token distribution strategies to attract more attention. He emphasized that it is only in “nuanced” use cases that these projects can compete with centralized giants like Amazon Web Services and his ChatGPT.
Buterin advocates AI integration
In addition to the insights provided by Coinbase, Ethereum co-founder Vitalik Buterin recently expressed optimism about integrating artificial intelligence to address issues within the blockchain network.
Buterin highlighted the potential for AI-driven audits to identify and fix problematic code within the Ethereum network, and highlighted the use of AI to mitigate the “biggest technical risks” to the network. .
Meanwhile, Coinbase's analysis highlights two potential avenues for growth within the crypto AI sector: increasing the accessibility of blockchain data for human interpretation and analysis, and increasing the accessibility of primarily centralized AI. Decentralization of infrastructure has been pointed out. However, Han emphasized that the future of decentralized AI is uncertain and the direction of the AI industry is unpredictable.
