Binance report: AI-related tokens price surge over 185%

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According to the “Binance AI x Crypto: Latest Data and Developments” report, AI-related crypto tokens showed major growth before January 2, with their prices increasing over 185 percent in three months,

The report identified six coins as AI tokens, namely SingularityNET (AGIX), Cortex (CTXC), Fetch (FET), Ocean Protocol (OCEAN), Oraichain (ORAI) and Render (RNDR).

“AI-related tokens have generally experienced positive performance in 2023, with the top five AI coins by market capitalization significantly outperforming BTC and ETH, culminating in gains ranging from 200% to 650% in 2023,” said Binance.

Among these AI coins, FET emerged as the best performer in 2023, with a remarkable 659 percent price surge for the year. Fetch is a blockchain network that operates AI programs called “Agents” and offers an AI services marketplace, as per its documents.

AGIX showed the second-highest gain among these coins, reaching a 616 percent increase for the year. It purports to provide an AI services marketplace on the Ethereum network, planning to expand to other networks in the future.

OCEAN and TAO, additional AI tokens to FET and AGIX, experienced a surge of 215 percent and 191 percent, respectively.

AI tokens outperform Bitcoin, ETH

AI tokens outperformed major cryptocurrencies like Bitcoin (BTC) and Ether (ETH) throughout the year. In contrast to the 185 percent growth of AI tokens, BTC rose by 150 percent, and ETH increased by 44 percent.

Excluding meme coins, AI tokens demonstrated the second-highest performance, surpassed only by Ethereum layer 2s. However, when meme coins were included, they occupied the third position among the top-performing categories, as indicated by Cryptokoryo’s report.

Binance highlights that the recent rise in AI token prices reflects increased interest in AI, demonstrated by Google search trends.

Binance also stressed that funding for web3 AI-related projects increased sharply in 2023, hitting $298 million.

“This is more than the collective funding amount raised for AI projects from 2016 to 2022, at US$148.5M,” said Binance in its report.

AI-DePINS combination adoption emerge

Last year, global manufacturers began increasingly adopting decentralized physical infrastructure networks (DePINs). DePINs are blockchain protocols using cryptocurrency tokens to encourage decentralized creation and management of physical infrastructure.

In its report, Binance noted that several trends and practical applications have arisen from the fusion of AI and crypto, like boosting DePINs and creating more engaging consumer applications.

“This is where decentralized compute networks, a subset of DePIN come in. They provide an alternative to existing solutions dominated by centralized cloud providers and hardware manufacturers,” said Binance.

Data from digital intelligence analyst Messari show that the DePIN market is presently valued at about $2.2 trillion. It predicts a trajectory that might elevate it to approximately $3.5 trillion within the next four years.

For instance, DePINs enabled the Peaq Network to tokenize a fleet of Teslas using its technology and Bosch collaborated with the European Union to establish a decentralized IoT.

Co-founder of the Peaq Network Leonard Dorlöchter predicts the DePIN sector is poised to flourish in 2024, closely tied to the ongoing AI boom.

“Think of it: AI enables machines to function as independent economic agents creating real-world value, and the DePIN model creates an ownership and value distribution framework for that, enabling owners of AI-powered devices to earn from their activities,” Dorlöchter said.

Some speculate that DePIN technology could become one of the most crucial crypto investments of this decade. Yet, the rapid emergence and integration of artificial intelligence (AI) in the past year have raised questions about the compatibility of these two technologies.