• AI tokens are riding a wave of interest due to the capabilities of ChatGPT and other AI applications.
• Over the past 30 days, the top three gainers in the AI sector were Kambria, SingularityNET, and Graphling Protocol which grew 445%, 322%, and 290%, respectively.
• Eight of the top 10 performers are microcaps, meaning they are untested, high risk, and low liquidity.
The artificial intelligence (AI) narrative has grown exponentially in recent weeks, thanks in large part to the success of chatbot ChatGPT. Since its launch, the ChatGPT application has captivated the imaginations of people around the world and has served as a prime example of the potential of AI to revolutionize many aspects of life.
This newfound enthusiasm for AI has also spilled over into the crypto landscape, leading to a newfound interest in AI tokens. In the past 30 days, the top three gainers in the AI sector have been Kambria, SingularityNET, and Graphling Protocol, which have all seen impressive gains of 445%, 322%, and 290%, respectively.
However, while the potential upside of AI tokens is high, so too is the risk. That’s because eight of the top 10 tokens in the AI sector are classified as “microcaps”, meaning they have market cap valuations below $50 million. This means that these tokens are largely untested, have a high risk of failure or abandonment, and are typically quite illiquid.
Still, for those who are willing to take the risk, the potential rewards are significant. With low market caps, large capital inflows can result in large percentage gains in a short amount of time. As such, investors who are willing to take a chance on AI tokens could potentially reap significant rewards in the long run.
Overall, while the AI sector is still in its infancy, it is clear that the technology holds a great deal of promise. With continued innovation, the potential of AI tokens to revolutionize the crypto landscape is very real. For those who are willing to take the risk, the potential rewards could be quite substantial.