The AI that started with ChatGPT and grew significantly in a short period of time with the involvement of Google and Elon Musk, has led to the emergence and even growth of many projects in cryptocurrencies. However, the Coinbase exchange stated that many projects currently in the artificial intelligence category in the crypto ecosystem are priced more than they should be and their usage areas should also be questioned.

“AI tokens may lack sustainable demand side drivers”

According to a report by David Han, a research analyst at Coinbase, AI projects in the crypto industry are facing technological challenges as well as internal competition:

“Our contrarian view is that the value potential for many AI tokens may be overstated as a result of broad attention on the AI industry and that many AI tokens may lack sustainable demand side drivers in the short to medium term.”

“The surge in AI projects is largely fueled by the hype surrounding AI”

Han also stated that despite the price rally, they are cautious about the comments that AI-focussed projects in crypto will have a major impact on the industry.

In the crypto ecosystem, where Bitcoin has increased by more than 55% since the beginning of 2024, many AI coins have also risen sharply. Nvidia’s global popularity and the increase in its share price also made such coins stand out in crypto.

However, it is also known that many projects in the crypto world that are said to be artificial intelligence do not touch this area very much. For this reason, cryptocurrencies and tokens called “artificial intelligence coins” should not be evaluated in this sense.

Coinbase’s report also stated, “The future of the AI industry itself is still largely undetermined.”