As 2023 gets underway and the crypto industry steadily grows in popularity, numerous developers are focusing their efforts on improving user experience, which is a major source of frustration for many. To that end, Artificial Intelligence (AI) has frequently been viewed as a technology that has the potential to improve how people use and regularly interact with various cryptocurrencies and crypto related technology like blockchain, NFTs, and the metaverse.
A new age of digitization?
The popularity of OpenAI and applications like ChatGPT has fueled the narrative that AI really is taking over the world. Unsurprisingly, the trend has also spread to the crypto industry, where tokens associated with AI-related crypto projects such as AGIX have seen a recent price increase.
With that in mind, it is almost certain that AI shall be integrated into crypto applications in a manner which significantly enhances user experience. In fact, many crypto on-chain data platforms will inevitably and regularly utilize AI to help users find information more easily, similar to how Bing integrated ChatGPT not too long ago.
What does this have to do with crypto?
Following the failure of many crypto platforms in 2022 like 3AC, Terra, and FTX, institutions adopted a new standard known as Proof of Reserves to offer more transparency to their end users. However, some have argued that this may be useless because it cannot be relied upon to confirm solvency, as many of the collapses last year could have been avoided if users just had more information on how exchanges and lending platforms were managing deposits via on-chain data. Furthermore, regulation could be more effective if on-chain data was closely monitored as well, according to some online discussions.
In this way, compelling narratives can be viewed as fuel for crypto markets, and AI is simply the latest trend in that regard. AI-based tokens are hence being heralded as the sector which will lead the next bull market cycle by prominent traders on Twitter, Reddit, and other platforms. Thus far, they may be correct, as such tokens have increased by an average of 80% in the last few weeks alone, which include the likes of AGIX, FET, and ALI.
What will the future hold?
According to the 7th e-Trading Edit report by JPMorgan, responses by 835 institutional traders in 60 global markets were gathered and over half of these traders said that AI and machine learning will be the most influential technologies shaping trading methods within the next three years.
Lastly, although blockchain and crypto had been mentioned prominently in previous surveys, AI was mentioned 4 times more than blockchain. This makes sense given the fact that ChatGPT for instance took only 2 months to reach 100 million users, an accomplishment which others like Netflix, Gmail, Twitter, Whatsapp, and Facebook all took years to achieve.