According to CoinDesk: There's a wave of development-driven optimism in the world of AI-focused tokens. This past weekend saw gains in this sector, further highlighting the potential for long-term growth. Triggered by key news in AI companies, excitement around this emerging tech sector is mounting.
Elon Musk's announcement on Sunday was a significant player in this surge. Musk stated that shareholders of X Corp, which oversees a range of companies, will own a 25% stake in the new AI venture xAI. This firm has just begun testing its Grok chatbot, a move that has already led to the creation of hundreds of replica tokens.
Additionally, rumors of OpenAI founder Sam Altman making a return to the board following a surprising dismissal last week also sparked bullish sentiment for the AI token sector. In spite of contradictory reports (Bloomberg reported that former Twitch CEO Emmett Shear had been appointed to the top job at OpenAI), the speculation did not dampen the upward progress of AI tokens.
Several AI tokens saw respectable gains: Bittensor's TAO rose 4.2%, contributing to a week-long 77% rally, while Ocean Protocol's OCEAN, Fetch AI's FET, and SingularityNet's AGIX surged as much as 16% in just 24 hours. These performances overshadowed those of bitcoin and other major cryptocurrencies. The AI token sector overall climbed nearly 8%, and within small-cap stocks, image generation platform ImgnAI’s IMGNAI shot up by 40%.
The AI token segment started gaining attention in late 2022, after the launch of chatbot ChatGPT and image generation software Dall-E by OpenAI. Although these products do not utilize crypto or blockchain, they've significantly impacted the narrative around AI and crypto. As a reference point, this sector is expected to resemble the progression of gaming applications and DeFi tokens in the 2020-2022 bull market cycle.
