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AI tokens are dropping once again after a terrible week. Is all the hype about their potential coming to an end?
SingularityNET (AGIX) and other AI tokens have taken another dive today following a poor week. The token dropped over 3% on May 3 and approximately 17% over the last 7 days. The decline is even worse over a 30-day period, where AGIX has fallen over 25%. The Graph (GRT), the top AI token by market cap, is also down today.
AI Tokens Plummet
All but two of the top 10 AI tokens are down over the last 7-day period. RLC is up over 14% over a seven-day period, and PHA is up approximately 0.85%.
AI tokens are digital assets traded on a blockchain that have some link to AI-based technology. Exactly how they interact with AI can differ wildly from token to token.
AI Token Hype Drove Massive Gains
For a while now, there has been a near-continuous decline in the long-term trend of AI tokens. However, at the start of the year, similar to many other cryptocurrencies, they experienced a frenzied beginning as bullish sentiment won out.
During early February, thanks to market hype, their value surged. For example, AGIX observed a rise of 669.15% in a 30-day period, while GNY increased by 946.61% during the same timeframe. Big Data Protocol (BDP) experienced a 4000% increase in January. Nevertheless, the market sentiment has cooled off significantly since then.
However, AI and blockchain experts have questioned the compatibility of these two technologies. The general consensus across the market is that their price is driven by speculation and not the value of the projects themselves.
The recent downswing 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 tech industry this year. The excitement kicked off last year with the rise in popularity of AI image generators like Midjourney and DALL-E. And hype grew again in November 2022 with the launch of ChatGPT. The latter has been the subject of widespread discussion and debate. But even prominent figures in the tech space, like Elon Musk, have warned sternly about where AI may lead.