The Nosana project (+1000%) has become a top-performing AI token. On average, these coins have gone up nearly 260% since the beginning of the year. What have AI tokens reacted to? Were they influenced by bitcoin or did they rally due to the success of companies like OpenAI and Nvidia? And what are the specific growth triggers in this segment?
The key growth catalysts for AI cryptocurrencies in 2024 have been:
1. Overall excitement surrounding the development of AI technologies after the release of ChatGPT by OpenAI at the end of 2022. This event stoked an upsurge of investor interest in AI crypto projects.
2. Specific announcements and releases of new AI products from leading companies such as OpenAI. For instance, OpenAI’s announcement of the text-to-video Sora model in mid-February 2024 on average pumped up AI cryptocurrency prices by 151%.
3. The success of individual AI crypto projects, improvement of their technologies and their broader application. Thus, Nosana skyrocketed 987.9% on the back of upbeat news about the rollout of this project.
There are over 13,000 tokens on the cryptocurrency market that few people know about. It’s not easy to find promising coins on a long list. Accordingly, little-known coins tend to have low liquidity for the public at large, so they are highly volatile and amid heightened demand for coins show high profit, since the order book is empty and there is no supply in it.
Thus, AI cryptocurrencies rallied against the backdrop of their own positive AI drivers, while the surge in BTC further boosted sentiment amid the upturn in altcoins.