It’s no secret that there is an ongoing convergence between 4IR technologies. Innovations such as AI, blockchain, AR, VR, robotics, analytics, and more are going to become increasingly intertwined as time goes by. They go hand in hand, in many respects, in a society that is becoming more interconnected by the day.
We predict a current trend in 2024 involving AI 2.0 tokens, that has already begun. Investors can capitalize on this trend, and there are stats to back it up. But it’s very important to vet all available tokens in the sector, to make sure ROI is maximized.
The rise of AI 2.0 tokens
A research report from Binance has outlined AI tokens as the second-best overall category when meme coins were excluded, trailing behind only L2s. Below you will find returns by crypto category in the three months leading up to January 2, 2024:
- L2s – 221%
- AI – 185%
- L1s – 184%
- RWA – 145%
- GambleFi – 132%
- Oracles – 125%
- GameFi – 105%
- DeFi 2.0 – 87%
- Real Yield – 65%
- DeFi 1.0 – 64%
On a yearly basis, AI tokens (200% – 600%) outperformed both Bitcoin (150%) and Ethereum (44%). The top performing taken was Fetch.ai (659%), a token we recommended to subscribers on January 7th, 2023, right before it went 8x. Here’s exactly what we wrote about Fetch.ai:
“FETCH: This is the strongest bullish reversal we see across hundreds of crypto tokens. No surprise, other big data & AI tokens have also bullish reversals. The first bullish targets are 0.18 and 0.27.”
In other words, we chose a top industry and picked the very best performer within that industry. And we think a new wave of AI 2.0 tokens is arriving. Parallels can be drawn with the DeFi 1.0 and DeFi 2.0 industries. And while there was massive investment in these areas, institutions and VCs might prefer to target AI 2.0 tokens. Actually, the DeFi industry has seen a lot of investment, and it’s closely tied to the price of ETH.
Just what are AI 2.0 tokens?
In the Binance report, six AI tokens were taken into consideration. These included SingularityNET, Cortex, Fetch.ai, Ocean Protocol, Oraichain, and Render. As a group, these tokens saw an increase of 185%, though it’s not clear why they selected these particular tokens.
There are different definitions of what constitutes AI tokens., and the selected items were not the most well-known. The five largest AI tokens by market cap include Injective (INJ), The Graph (GRT), Render Network (RNDR), Theta Token (THETA), and Oasis Network (ROSE). Big data tokens are often classified as AI tokens. GRT was a previous IH signal but is no longer a top recommendation.
See related: 2024 Is a Hidden Crypto Bull Market In Disguise
It’s possible to see a more advanced AI 2.0 token tied to other industries, with increasing specialization. One possible collaboration would be between decentralized physical infrastructure networks (DePIN) and AI tokens. A DePIN example would be the Helium Network Token on Solana, aiming to provide physical infrastructure to support IOT devices. It offers a range of P2P hotspots to users.
All AI tokens will typically offer smart contract capability and are typically minted through Ethereum or Binance. They will be interoperable with AI and ML platforms. M2M networks (IOTA, IOTchain, etc) designed for large-scale communications between IOT devices will likely need suitable AI 2.0 tokens to match.
Fetch.ai a leading AI token indicator
Fetch.ai is arguably the leading indicator of AI-based tokens. This means that by analyzing the Fetch.ai chart, we have a good idea of what the AI universe is doing.
The chart above indicates an ABCD pattern (AB up, BC down, CD up). For now, the ABCD pattern is exhausted, meaning that it is unlikely to maintain upward momentum in the near term. Plus, as the best-performing AI coin in 2023, it would be hard to keep such momentum going. It’s always better to pick the winners before they’ve actually won.
The weekly chart does indicate long-term bullish momentum, though it is still reaching saturation with a similar conclusion to the daily chart. We believe there is significant momentum in the AI token space, but a broad push might not occur. A select few tokens will do well in the new AI 2.0 trend, yet these have to be carefully selected, as always.
Our top AI token tip for 2024
Similar to Fetch.ai being a narrative token or poster child for the broader industry, we believe that something similar might be the case with a specific AI coin. For instance, this token has the potential for 5x to 8x returns. We did pick Fetch.ai as a leader (along with GRT and OCEAN) and can pick winners again.
We published a detailed price forecast for this leading AI 2.0 token in 2024, available to premium subscribers. This is invaluable data for investors looking for the best tokens in a specific industry. Sector trading alone is simply not enough to make optimal crypto returns.
Disclaimer: This is not financial advice. Please consult with a licensed financial advisor prior to making any investments.
