Declining interest in crypto AI marks the decline of the industry due to declining valuations. The plummeting global search interest in crypto AI reflects a changing pattern in the field. Major AI-focused cryptocurrencies such as Graph (GRT) and SingularityNET (AGIX) have recently experienced significant declines in value. The crypto AI market is facing difficulties due to declining market confidence and trading volume.
Crypto AI Global Market Interest Drops Sharply Reflecting Changing Trends
Data from several sources suggest declining interest and appreciation for crypto AI efforts. According to Google Trends global search stats, “Crypto AI” score peaked in early February 2023 with a score of 100. However, in the last 90 days, the rating has dropped to a low of 22. Slovenia, the Netherlands, Cyprus, Lebanon and Nigeria are currently the top five countries searching for “cryptocurrency AI”.
The overall crypto AI economy hit the $4 billion milestone in February, with major advances in top AI-focused cryptocurrencies. The increase came after Microsoft made a significant investment in OpenAI, the company behind his ChatGPT. Since then, the industry has suffered huge losses. According to data from cryptoslate.com, the value of the AI token economy has dropped by $730 million.
Graf (GRT), the largest crypto AI asset by market cap, lost 10.71% of its value last month. The second largest AI-focused cryptocurrency asset, SingularityNET (AGIX), performed even worse, dropping 29.58% over the same period. The value of Fetch (FET), the third largest AI token, has decreased by 14.36% over the last 30 days. Most of these losses occurred in the previous trading week, coinciding with the general decline in the cryptocurrency market.
Prices of crypto tokens related to artificial intelligence fell 7.38% overall. It is reported to have fallen 15.70% from the previous week, and the situation is very difficult. His 24-hour global trading volume in the cryptocurrency AI sector is currently at $325.58 million.
AI crypto coin: what is it?
Cryptocurrencies that use artificial intelligence technology in their operation are called AI cryptocoins, also known as artificial intelligence coins or tokens. Such a currency could provide a specialized testing ground for new AI and ML models, apps and algorithms in a decentralized and open environment.
Unlike traditional cryptocurrencies, AI cryptocoins use machine learning algorithms and natural language processing to analyze market trends, predict future events, and execute automated trades. Investors see these as a more flexible and responsive investment option due to their ability to learn from and respond to market developments.
Risks Associated with Crypto AI
Although there are many advantages to using artificial intelligence in the cryptocurrency market, there are also some dangers such as regulatory barriers, volatility, technical issues and ethical dilemmas. Below are some of the major dangers posed by crypto AI.
Lack of regulation: AI cryptocurrencies are still relatively new technology, so there are few market regulations. This can foster a fraud and fraud-prone environment.
Volatility: AI cryptocurrencies, like all other cryptocurrencies, are prone to significant volatility. Government regulations, hacks, and investor sentiment are just a few of the variables that can affect markets. As a result of this volatility, investors may suffer large losses.
Technical issue: The accuracy of the evaluated data will determine how well AI is used in the cryptocurrency market. AI systems can incorrectly determine that data is flawed or missing. Technical issues can also occur, such as code mistakes in smart contracts, which can lead to money loss or security breaches.
Is AI cryptocurrency safe?
Several factors affect the security of AI cryptocurrencies, including market mood, government restrictions, technology used, and security measures in place.
Applying AI to the crypto sector will improve productivity and decision-making, but it does not automatically guarantee security. Artificial intelligence cryptocurrencies are as vulnerable to hacking as any other cryptocurrency. Hackers with access to AI trading systems can steal money and influence markets.