As Bitcoin stabilizes near $64,000, a shift in crypto trends is evident. Artificial Intelligence (AI) tokens, like Bittensor (TAO), Arkham (ARKM), and Internet Computer (ICP), are now outperforming meme coins, highlighting a change in investor focus.
They are showing strong market value performance and are also driving technological innovation in blockchain. This transition suggests a maturing market increasingly geared towards innovation and practical applications.
TAO Almost Doubles in a Week
Over the past 24 hours, the market capitalization of AI tokens has surged by more than 10%, reaching an impressive $30 billion. Leading this growth, Arkham has seen an 11.7% increase. Internet Computer follows with a 9.4% rise, and NEAR Protocol has climbed by 8%, according to CoinGecko data.
Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
Top AI Coins by Market Capitalization. Source: CoinGecko
This past week, all major AI tokens have experienced substantial growth. Bittensor’s TAO token, for example, has seen an 85% increase, surpassing Arkham’s 52.7% and the Artificial Superintelligence Alliance’s (FET) 31.7% gains.
Sector-wise, AI stands out as the prevailing narrative. Data from Artemis indicates a 32.3% surge in AI tokens over the last seven days. Conversely, meme coins have only seen a 10.4% increase, thus falling behind in investor interest.
Crypto Sector Performance. Source: Artemis
The growing popularity of AI-driven cryptocurrencies coincides with significant technological developments. Notably, OpenAI released its o1 model on September 12. This model boasts improved reasoning capabilities and has sparked interest across multiple sectors, including the crypto market.
OpenAI’s latest AI models promise enhanced efficiency in performing complex tasks. Reports suggest that the smallest unit of this new lineup surpasses the GPT-4o in AI testing benchmarks, simulating PhD-level challenges. This enhancement has raised the profile of AI tokens such as Worldcoin (WLD).
Read more: 9 Best Artificial Intelligence Stocks To Buy in 2024
Furthermore, investor interest in AI has surged, exemplified by OpenAI’s recent funding endeavors. Rumors of an oversubscribed $6.5 billion funding round, valuing the company at $150 billion, have been circulating. Bloomberg reports that investor demand exceeded available shares by billions.
Additionally, Apple’s AI features for the iPhone 16 and Nvidia’s earnings report have also influenced the crypto ecosystem. Crypto analysts are becoming increasingly bullish on the AI token market.
“AI will be the biggest narrative this upcoming alt run. What we saw in 2023 was just a warm-up,” Wizz, a pseudonymous crypto analyst, commented.