AI tokens are dropping again after a terrible week. Is all the hype about their potential coming to an end?
SingularityNET (AGIX) and other AI tokens took the plunge again today after a poor week. The coin is down more than 3% on May 3 and nearly 17% over the past seven days. The decline was the worst in the 30-day period, with the AGIX index down more than 25%. Graph (GRT), the top AI token by market cap, also fell today.
AI Tokens Plummet
All but two of the top ten AI tokens have fallen over the past seven-day period. The incidence of heart disease increased by more than 14% over a seven-day period, and PHA increased by nearly 0.85%.
AI tokens are digital assets traded on a blockchain that have some connection to AI-based technology. Exactly how they interact with AI can vary widely from token to token.
The distinctive hype of artificial intelligence has resulted in huge gains
For a while, there has been an almost continuous decline in the long-term trend of AI tokens. However, at the beginning of the year, similar to many other cryptocurrencies, they had a frenzied start with the uptrend triumphing.
During early February, thanks to the hype in the market, its value skyrocketed. For example, AGIX observed a rise of 669.15% in a 30-day period, while GNI increased by 946.61% over the same time frame. Big Data Protocol (BDP) saw an increase of 4,000% in January. However, market sentiment has cooled significantly since then.
However, AI and blockchain experts have questioned the compatibility of these two technologies. The general consensus in the market is that their price is driven by speculation rather than the value of the projects themselves.
The recent pullback is mostly the result of speculators leaving now that the hype has died down.
Artificial intelligence has been the dominant topic of conversation in the technology industry this year. The excitement started last year with the rise in popularity of AI image generators like Midjourney and DALL-E. And the hype grew again in November 2022 with the launch of ChatGPT. The latter has been the subject of widespread debate and discussion. But even tech luminaries like Elon Musk have warned fervently about where artificial intelligence might lead.
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