By
Godfrey Benjamin
April 26th, 2024
Bittensor, as well as other major AI crypto tokens, have pushed the market cap of AI-related digital assets close to $10 billion.
The artificial intelligence (AI) crypto sector is nearing $10 billion in market capitalization after Bittensor (TAO) jumped more than 140% over the last 30 days. The TAO token hit a new all-time high (ATH) of $698 on Thursday after its market cap crossed $4 billion. As of this writing, CoinMarketCap data shows TAO is now trading at $666.5, following a 36% surge in the past 7 days.
Bittensor Benefitting from AI Boom Along with Other Related Crypto
According to CoinGecko data, Bittensor is the largest AI token with a market cap of $4.1 billion. It is a decentralized network designed for machine intelligence and the development and deployment of AI models. The aim is to create an ecosystem to train, share, and deploy AI models in different types of applications.
The platform’s explorer shows that it has been running for 835 days now, with nearly 69,300 active accounts. Total staked coins are nearly 5.3 million, against the total issued count of 5.8 million. A CoinCodex price prediction puts TAO at $722.36 by Tuesday.
Ethereum co-founder Vitalik Buterin recently indicated support for Bittensor. In a blog post on the promise and challenges of applications that combine cryptocurrencies and AI, Buterin noted that financial incentives can be used to support the creation of better AI applications. Highlighting Bittensor, he wrote:
“‘Using crypto incentives to incentivize making better AI’ can be done without also going down the full rabbit hole of using cryptography to completely encrypt it: approaches like Bittensor fall into this category.”
In addition to some of the advantages enjoyable from the intersection of AI and blockchain technology, there is also a watchdog function applicable. The explosion of AI has caused some concern in the sector, with many highlighting its potential for misuse. Blockchain can help curb some of these excesses, for instance, by ensuring large language models (LLMs) use trustworthy data. In addition, observers are concerned that large and centralized players like Google and OpenAI could eventually amass a little too much power over AI technology. Blockchain and its decentralized nature could also help solve some of these problems.
AI and Big Tech
According to Accel’s annual Euroscape Report published last year, several large tech companies benefited significantly from AI. The report shows that within a year, big names like Microsoft Corporation (NASDAQ: MSFT), Apple Inc (NASDAQ: AAPL), and Amazon.com Inc (NASDAQ: AMZN) added $2.4 trillion and climbed by 36% in the previous year.
In recent times, Nvidia has been one of the largest beneficiaries of the AI boom. Last year, Nvidia’s Q3 earnings scaled Wall Street expectations, reporting adjusted earnings of $4.02 over $3.36. The company also reported a 206% yearly increase in revenue, at $18.12 billion over the estimated $16.09 billion.
Current MarketWatch data shows that NVDA has climbed more than 27% in the last month, and 47% year-to-date (YTD). In the last year, the chipmaker’s stock climbed more than 230%.