Highlights
- AI tokens and how they function
- The underlying technologies of AI
- Top 5 AI tokens and their market sizes
In the ever-evolving and chaotic world of cryptocurrencies, coins pop-up every day. While they are all cryptocurrencies with the underlying technology as blockchain, most of these coins have areas of focus and are categorised as such. Although, fundamentally, cryptos have two broad groupings: the main (Bitcoin and Ethereum) and the and the altcoins (any other coins that are not the two).
So in these altcoins, thats where the other groupings like meme coins, NFT coins and Artificial Intelligence (AI) coins come in. This article focuses on AI coins or tokens. The article will also explain what the major AI tokens worth investing in are.
First, let's understand what cryptocurrencies are.
What are cryptocurrencies?
At its core, cryptocurrencies are a type of digital currency. They are not issued by central banks or kept in conventional financial institutions, but they can be traded or spent.
They’re decentralized. This implies that individuals who voluntarily keep track of everything using specialized software hold the records of balances and transactions rather than banks or payment processors.
What are AI tokens?
Artificial Intelligence (AI) tokens or coins are digital currencies or cryptocurrencies that facilitate blockchain-based applications, services, and projects centered around AI.
They are tokens that have artificial intelligence technologies integrated into them. Usually, the purpose of these tokens is to use AI in different ways, like improving blockchain functions, customizing user interfaces, or enabling automated trading. Because of the AI component, these coins may be able to learn from data and user behavior over time, thereby increasing their functionality and efficiency.
AI tokens play important roles. First, they facilitate transactions. AI tokens play three pivotal roles; the first is facilitating transactions. They serve as a medium of exchange on AI-powered platforms. Users can use them to access data, make payments for services, and take part in platform activities.
They also play a critical role in facilitating protocol governance. Certain tokens grant their holders governance rights, enabling them to take part in the decision-making procedures that determine the growth and course of the AI platform or project.
Top AI tokens to research and possibly invest in
There are many AI tokens but below are the most popular of them according to their market capitalization.
Near Protocol (NEAR)
Market capitalization: $5.4 billion.
NEAR Protocol is a layer-one blockchain created as a community-run cloud computing platform. It does away with some of the drawbacks that rival blockchains have been plagued by, including slow transaction speeds, low throughput, and inadequate interoperability.
Render (RNDR)
Market capitalization: $2.8 billion
Built on the Ethereum blockchain, RenderToken (RNDR) is a distributed GPU rendering network that seeks to link studios and artists in need of Graphics Processing Unit (GPU) compute power with mining partners willing to rent out their GPU capabilities.
Injective (INJ)
Market capitalization: $2.1 billion
The Injective (INJ) blockchain was developed with finance in mind. Lending protocols, prediction markets, decentralized spot and derivatives exchanges, and other next-generation Decentralized Finance (DeFi) applications are all powered by this open, interoperable layer one blockchain.
The Graph (GRT)
Market capitalization: $1.9 billion
The Graph is an indexing protocol for querying data for networks like Ethereum and IPFS, powering many applications in both DeFi and the broader Web3 ecosystem. Anyone can build and publish open Application Programming Interfaces (APIs), called subgraphs, that applications can query using GraphQL to retrieve blockchain data.
Bittensor (TAO)
Market capitalization: $1.8 billion
Bittensor is an open-source protocol that powers a decentralized, blockchain-based machine learning network. In TAO, machine learning models are trained in a collaborative manner and are rewarded based on the informational value they provide to the group. In addition, TAO provides external access, enabling users to retrieve data from the network and customize its operations to suit their requirements.
Active addresses in Bitcoin network drop to lowest level since 2010
Meanwhile, TheRadar earlier reported that the active address ratio of the Bitcoin network has significantly decreased, according to data from IntoTheBlock. The ratio now stands at 1.22%, the lowest since November 2010.
The number of weekly active addresses as of May 27 was 614,770, which is the lowest amount since December 2018.
