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A recent report from Binance Research has highlighted a significant trend in the cryptocurrency market: AI tokens have delivered the third-highest returns of any category over the past three months, trailing only behind Ethereum layer 2s and memecoins.
The report, which analyzed data up to Jan. 2, 2024, revealed that AI tokens, including notable names like Fetch, Ocean, and Oraichain, have outperformed most other sectors in the crypto market. These tokens saw an impressive price increase of 185% over the three-month period.
How AI Tokens Compare To Other Categories
To put this into perspective, DeFi 2.0 tokens experienced an 87% increase, GameFi tokens rose by 109%, and Real World Asset (RWA) tokens saw a 145% increase. The only category that posted better returns than AI tokens was layer-2s, with a 221% gain. Notably, the researchers excluded memecoins from their analysis due to their disproportionate large percentage performance gains, attributed to their relatively lower market capitalization.
Outperforming Major Coins
AI tokens also outshone major cryptocurrencies such as Bitcoin (BTC) and Ether (ETH) over the year. While BTC ended the year up 150%, and ETH gained 44%, the one-year performance of AI tokens varied from 200% to as high as 650%.
Top Performers Among AI Tokens
Fetch emerged as the top performer in this category, with its price increasing by 659% for the year. Fetch is a blockchain network that operates AI programs called “Agents” and offers a marketplace for AI services. SingularityNET followed closely, posting a 616% gain for the year. This platform provides an AI services marketplace on the Ethereum network, with plans to expand to other networks.
Other Notable Gains
Other AI tokens that saw significant gains include Ocean Protocol, with a 215% increase, and Bittensor (TAO), which posted a 191% gain. These tokens are part of a growing trend where blockchain technology intersects with AI, creating innovative solutions and investment opportunities.
Future Outlook
Experts predict that blockchain-based decentralized physical infrastructure networks (DePIN) combined with AI will become a powerful duo in the crypto space in 2024. This synergy is expected to drive further innovation and growth in the market.
The remarkable performance of AI tokens underscores the increasing integration of AI and blockchain technologies, signaling a promising future for this sector in the cryptocurrency market.
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