Artificial intelligence (AI)-focused tokens rose over the weekend as developments in key AI companies sparked euphoria around the long-term growth of the emerging technology sector.
Elsewhere, reports of Sam Altman, the founder of ChatGPT developer OpenAI, possibly returning to the board after a surprise ousting last week bolstered bullish sentiment for the AI token sector. Despite the corporate drama, it's unclear if Altman will return as Bloomberg reports that former Twitch CEO Emmett Shear has been named to the company's top job.
Bittensor's TAO rose 4.2%, adding to a 77% rally over the past week. Ocean Protocol's OCEAN, Fetch AI's FET and SingularityNet's AGIX zoomed as much as 16% in the past 24 hours, outperforming bitcoin and other majors. The sector jumped nearly 8%, driving the biggest gains for crypto traders.
Among small-caps, image generation platform ImgnAI’s IMGNAI jumped 40%.
AI tokens started to gain traction among crypto market observers in late 2022 after the public launch of chatbot ChatGPT and image generation software Dall-E. Both are traditional software that does not use cryptocurrencies or blockchain and was launched by OpenAI.
However, traders widely consider this sector to be a large narrative of a possible bull run in the coming years, similar to how gaming applications and decentralized finance (DeFi) tokens drove the majority of returns in the 2020-2022 bull market cycle.
While reports suggest that Altman, the face of the AI boom, will not return to the company, they failed to douse the momentum of AI tokens.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is an award-winning media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. In November 2023, CoinDesk was acquired by Bullish, a cryptocurrency exchange, which in turn is owned by Block.one, a firm with interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets including bitcoin and EOS. CoinDesk operates as an independent subsidiary, and an editorial committee, chaired by a former editor-in-chief of The Wall Street Journal, is being formed to support journalistic integrity.