The rapid proliferation of AI portrait applications is causing movements in the cryptocurrency market. After the big hype for DeFi and NFT, is it time for artificial intelligence?
Widespread access to AI solutions
Recent weeks are becoming a kind of breakthrough in the application market. It is noticeable that the baton of leadership is being taken over by one very specific sector. It is AI. Applications based on artificial intelligence systems are primarily tools for processing photos and videos. These materials, based on special algorithms, transform a previously acquired image into a similar, but often much better one. The result is the generation of graphics that are difficult, or even impossible, to achieve with previously used processing software.
In this way, something is happening that AI solution developers have been anticipating for a very long time. Artificial intelligence is breaking into the public consciousness, and it brings with it positive impressions. AI until recently was reserved for large corporations. Today, this is no longer the case. The question, however, is how does it relate to blockchain and crypto?
Artificial intelligence and blockchain
Let’s start with the fact that artificial intelligence has been used in traditional financial markets for years. Several leading hedge funds officially declare that they are using AI to increase the profitability of their trades. As we know, stock exchanges are infinite sources of information, which, with lightning-fast processing, can be turned into tangible profits.
Sorting through huge amounts of data is also necessary in the cryptocurrency market.
Blockchain represents an ever-evolving ledger, which requires analysis deeper and more accurate than a human is capable of. Data analytics, for example, allows investors to identify and forecast events that affect price dynamics. This helps in making informed decisions. In addition, AI solutions are systems that very often can learn at lightning speed themselves. This speed for a human is impossible to achieve, and even if it were, its energy intensity would be alarming.
AI is leading the growth in the cryptocurrency market
Thus, artificial intelligence, moving from a very concentrated environment and reaching all the way to the mainstream, has triggered significant movements in the cryptocurrency market. This is evidenced, for example, by the Fetch.AI (FET) project, which already in its very name shows a focus on this very special sector. In just the past six days, FET has made an increase of nearly 110%. By contrast, measuring from the bottom of its valuation, reached on November 22 and standing at $0.0528, to the time of this writing, it is almost in a parabolic movement of nearly 150%.
So is this just a short-term fad, or is it the beginning of a new trend? We will certainly find out soon.