AI crypto coins have been on a surge, even outpacing the record-breaking performance of Bitcoin over the past year. According to CoinGecko, AI crypto tokens have achieved a combined market value of $20.8 billion, up from its $2.7 billion valuation last April. These coins have seen an increase in their value ranging from 50% to 500% over the last year, indicating a soaring demand in this space that needs to be capitalised on.

But what exactly are AI crypto coins? How do they work, how do they differ from traditional crypto coins and who are the major players within this space? This article aims to uncover all these aspects. So, without further ado, let’s dig in.

What are AI Crypto Coins?

As the name suggest AI crypto coins are a ground-breaking fusion of digital currencies and artificial intelligence. Markus Levin, co-founder of XYO Network – a blockchain data storage firm – points out “As AI systems and blockchain networks continue to grow, we will see more use cases fusing together the two industries.”

These coins are more than just cryptocurrencies; they are specifically designed to support AI-based applications, projects, and services within the blockchain ecosystem. These AI coins play three pivotal roles:

Facilitating Transactions

AI requires large amounts of processing requirements, which can be costly and complex. AI crypto coins bridges this issue by providing an medium of exchange for AI-powered transactions. This trade provide users access to AI platforms, making it easier for users to pay for AI-applications, access data, and participate in the platforms activities.

Enabling Protocol governance

Some AI coins allow users to have governance rights, empowering and encouraging users to participate in decision-making processes shaping the development and direction of AI projects or platforms.

Incentivise Rewards

These coins also incentivises participation by distributing rewards in the form of coins. Users can earn tokens through various contributions, such as providing computational resources, sharing data, or in the development of AI applications.

How does AI Crypto Coins differ from Traditional Cryptocurrencies?

While traditional crypto coins operate on blockchain technology, AI crypto coins take it one step further by integrating AI technology into their platforms for tasks such as, machine learning, data analysis, and automated decision-making capabilities not found within traditional cryptocurrencies.

Another set of these AI coins focus on smart contract capabilities. They leverage their AI capabilities to automate and optimise contract execution, negotiation, and enforcement. These smart contracts can autonomously adapt to changing conditions based on predefined rules and AI-driven analysis.

In essence, AI crypto coins not only utilise blockchain technology but also harness the power of artificial intelligence, significantly expanding the capabilities of traditional cryptocurrencies.

Top 5 Market leading AI Crypto Coins & Their Use Cases.

New AI crypto coins will come into the market that may change the current landscape, however as of writing these are the top five leading AI coins by market cap, each distinguished by unique applications and user engagement.

Bittensor (TAO)

Bittensor developed by Opentensor was launched in March 2023. The objective of TAO is to utilise blockchain to create a decentralised machine learning network. The objective of this network is to enable machine learning models to train collaboratively, whilst rewarding participants TAO coins for providing computational resources or data. Bittensor also aims to provide global access to computing power, governance, and distribution of AI technology effectively.

Bittensor (TAO) has amassed a market cap of $3.56 billion and is up by 782% over the last year which is insane when you compare it to Bitcoin which has only increased by 109% over the same period.

Render (RNDR)

Render Network is the leading provider of decentralised GPU rendering solutions for AI and the digital creation process. It allows users with excess GPU compute power to help artists looking to scale intensive 3D rendering work and individuals looking to improve their artificial intelligence data processing. Currently RNDR has a market cap of $3.15 billion and is up 390% over the last year.

The Graph (GRT)

The Graph is a global API and indexing protocol aimed at organising blockchain data, utilizing its easy querying for AI analytics. The Graph Explorer also helps developers search and find all public data they need to build DApps. As of writing GRT has a market cap of $2.41 billion up about 51.5% over the last year.

Fetch.AI (FET)

Fetch.AI is the first open network for AI agents, which are modular building blocks that can be programmed to perform specific tasks. They can interact with a variety of APIs for a advanced applications with precise functionality. They can also work with ML models, help with earning, and explore new search paradigms. This makes Fetch.AI a very desirable coin with huge potential. As of writing FET has a market cap of $2.16 billion up about 406% over the last year.

SingularityNET (AGIX)

SingularityNET is a platform that offers open and decentralised network of AI services made accessible through the blockchain. It allows developers to publish their AI applications on the SingularityNET network, allowing developers to charge for the use of their AI application using the native AGIX coin. Currently AGIX has a market cap of $1.05 billion and is up by 88% over the last year.

Final Words

AI crypto coins are showing a remarkable return for early investors in this early stage of their development and adoption. The coins are actively trying to address real-world problems through the use of decentralized finance, whilst providing incentives for users to utilise these networks for AI solutions.

There is still a big issue to be aware of, cryptocurrency is a highly volatile space and things change in a blink of an eye. Not all projects succeed especially within the relatively new space of AI crypto coins. Although I believe there are some very intriguing use cases for these AI crypto coins it’s important to further research on all coins before entering this realm.