Top 10 Artificial Intelligence (AI) Cryptocurrencies (2024)

Cryptocurrencies are a form of digital currency. They can be spent or traded, but they’re not issued by central banks or stored in traditional financial institutions.

Instead, they’re decentralised. This means banks or payment providers don’t control records of balances and transactions. Instead, they’re held by people who volunteer to keep track of everything using specialist software.

This process is commonly known as ‘mining’, and miners are incentivised by the prospect of earning cryptocurrency rewards.

Huge speculation on the value of cryptocurrencies has led to a boom in both the number and value of assets in the space over the last few years. Bitcoin recently broke its previous all-time high price in March 2024, trading above $US70,000 for the first time ever and thereby passing over the $110,000 AUD threshold.

Artificial intelligence (AI) is a field of computer science enabling machines to make decisions based on data, increasingly mimicking human intelligence. AI can be categorised into different types, such as machine learning, neural networks, and more, each with unique applications.

Recent popular examples include AI-generated artwork—where a program interprets user prompts, written in natural language, to create pieces of digital art, and ChatGPT, an application that can create written content or even code according to a brief submitted by the user.

A more scary example of the recent advancements in AI are known as “deep fakes”, which are videos produced entirely by AI. These videos look incredibly realistic, to the point where the lines between reality and fiction have been blurred completely. This has raised concerns about the creation of political propaganda; content that damages the reputation of individuals depicted in fake videos, especially women; and other fraudulent activities.

In all cases, the outputs are close enough to what a real person might create that they could be mistaken for human creation, and these applications are getting increasingly sophisticated, with AI’s potential applications effectively being limitless, extending far beyond creative tasks—even into the cryptocurrency space.

Related: A Guide To Investing In AI Stocks On The ASX

AI cryptocurrencies are tokens associated with a blockchain AI project, often being used as means of value transfer between users of the platform or to govern the project’s direction. There are many different niches within blockchain AI, with some projects focusing on creating compute marketplaces to supply AI projects with the power they need to run AI models and others focusing on building decentralised AI models themselves.

We’ve looked at the top 10 AI crypto projects according to their market caps, exploring how AI is implemented and the unique value it brings to each platform.

1. NEAR Protocol (NEAR)

Market cap: $US7 billion

NEAR Protocol is a layer-1 blockchain that has been making significant strides bringing AI to the blockchain. The project claims it is bringing Web3 and AI together to help create a user-owned internet, guaranteeing privacy and ownership of data for individuals, which is becoming an increasing concern in our increasingly digital age. The project is positioning itself as a key player in decentralised AI, potentially enabling more accessible and transparent AI services while leveraging the security, transparency and decentralisation benefits of blockchain technology.

NEAR’s native token, NEAR, is used for transaction fees and governance within the network. As of July 20, 2024, NEAR was valued at $US6.35, down from its peak of $US20.42 from January 2022.

2. Artificial Intelligence Alliance (FET)

Market cap: $US3.7 billion

Artificial Intelligence Alliance is a new project that has resulted from the three-way merger between Fetch.ai, SingularityNET and Ocean Protocol. All tokens merged to the original FET token, which will soon be given the new ticker ASI. The alliance combines Fetch.ai’s autonomous agent technology, Ocean Protocol’s data exchange framework and SingularityNET’s decentralised AI services to create a unified ecosystem for building AI on the blockchain.

As of July 20, 2024, FET was valued at $US1.48, down from its peak of $US3.47 from March.

3. Render (RNDR)

Market cap: $US2.6 billion

Render Network is a decentralised platform that connects artists and creators with powerful computer resources to help them create high-quality 3D graphics and animations. The platform allows people to pool unused computing power, which can then be used by creators for a fee. The platform uses its own cryptocurrency, RNDR, to reward users who contribute their computing power and to facilitate transactions within the network. With applications in fields like gaming, virtual reality, and the metaverse, Render Network is making it easier for artists to create visual content without the need for expensive hardware.

RNDR was trading at $US6.84 as of July 20, 2024, down from its recent peak of $US13.60 in March.

4. Bittensor (TAO)

Market cap: $US2.51 billion

Bittensor aims to create a neural internet by revolutionising the development of machine learning platforms. The project is establishing a peer-to-peer marketplace for machine intelligence where AI models can combine their intelligence, essentially creating a “digital hive mind.” This innovative, decentralised method is designed to enable swift expansion and sharing of knowledge among AI systems.

As of July 20, 2024, TAO was trading at $US353, down from its peak of $US676 at the start of April.

5. The Graph (GRT)

Market cap: $US2.07 billion

The Graph is a protocol for indexing and querying data from blockchains in a similar way that Google indexes and queries data from websites. Indexing blockchain data can be challenging, but The Graph aims to change that by organising data into smaller ‘subgraphs’.

Its native, Ethereum-based cryptocurrency, GRT, was trading at US$0.21 as of July 20, 2024, down from its February 2021 peak of US$2.34.

6. Akash Network (AKT)

Market cap: $US833 million

Akash Network is a decentralised cloud computing platform that utilises blockchain technology to create a marketplace for buying and selling unused computing resources. The platform aims to provide a more cost-effective and flexible alternative to traditional centralised cloud service providers. Users can deploy and manage applications on the decentralised network, with transactions facilitated by the native token, AKT. The token also serves to reward network participants and govern the platform.

AKT was worth $US3.45 as of July 20, 2024, down from its peak of $US8.08 in 2021.

7. AIOZ Network (AIOZ)

Market cap: $US524 million

AIOZ Network is a blockchain that is built to be a comprehensive infrastructure solution for Web3 storage, decentralised AI and content distribution. The blockchain is interoperable with both Ethereum and Cosmos-based blockchains. The goal for the project is to create a content delivery network, which is a set of geographically dispersed servers that work together to provide Internet users a seamless experience when accessing digital content.

AIOZ was priced at $US0.47 as of July, 2024, down from its April 2021 all-time high of $US2.17.

8. Arkham (ARKM)

Market cap: $US397 million

ARKM is the native token of Arkham Intelligence, a blockchain analytics platform launched in 2023. It serves three primary functions: as the currency for the Arkham Intel Exchange, an incentive mechanism for platform adoption and the governance token for the exchange. ARKM powers an intel-to-earn economy where users can buy and sell crypto intelligence, including entity labels, hacker tracking data, and curated data feeds. The token’s economic model is designed to maintain network stability through a balanced cycle of circulation, with ARKM entering the system via intel-to-earn payments and rewards, and exiting through platform purchases and exchange fees.

As of July 20, 2024, one ARKM token was trading at $US1.64, down from its all-time high 0f $US3.98 in March.

9. Golem (GLM)

Market cap: $US351 million

Golem Network is a decentralised computing platform that creates a marketplace for idle computing resources, primarily targeting the AI industry. Users can buy computing power from suppliers using the native GLM token. The platform’s architecture enables complex tasks to be divided and processed in parallel across multiple providers, enhancing efficiency. Golem aims to democratise access to computational resources, making it easier for smaller AI projects to get access to the compute resources they need.

Golem is trading at $US0.35 as of July, 2024, down from its 2018 peak of $US1.32.

10. Echelon Prime (PRIME)

Market cap: $US303 million

Echelon Prime is a gaming ecosystem that integrates blockchain technology and AI to enhance the gaming experience. The platform supports game development studios and projects by providing the necessary tools and infrastructure to incorporate AI-powered features and blockchain-based token incentives into their games. One of the key games within the Echelon Prime ecosystem is “Colony,” which heavily utilises AI agents in various aspects of gameplay, creating a unique and dynamic gaming environment.

Echelon Prime’s native token, PRIME, is used for token incentives and governance voting within the ecosystem, allowing players to have a say in the development and direction of AI-powered games like “Colony.” PRIME was worth $US8.47 as of July 20, 2024, down from its peak of $US28.08 in March.

Many AI cryptocurrencies can be bought using crypto exchanges such as Binance and Kraken, just like traditional cryptocurrencies like bitcoin and Ethereum.

To trade, you’ll need to open an account—which often involves some identity verification steps, and deposit some fiat currency. You’ll then be able to navigate to the page of the AI cryptocurrency you want to buy within the exchange, enter the amount you’d like to buy and execute the trade.

For smaller projects, you may need to use a web3 wallet, such as Metamask, to connect to a decentralised exchange, such as Uniswap, in order to buy them.

Most exchanges offer custodial services, allowing you to keep your crypto in your exchange account. However, this requires trusting a third party with your crypto, and as has been seen with some exchange bankruptcies in the past, this is not always the most secure method of storage.

If you are more security conscious, you can use a crypto wallet to self-custody your crypto and ensure that your digital assets are in your control. There are many different crypto wallets out there, so if you decide to go down this path, ensure you do your research and find a wallet that is reputable.

You will also need to decide whether you are going to use a cold wallet or a hot wallet. Cold wallets are arguably more secure than hot wallets, since hackers can’t target them as easily. However, whichever option you choose, you will need to be comfortable with storing your own private keys for the wallet. Without these, you could lose access to your wallet and be unable to access your digital assets.

Whether AI cryptocurrencies are safe—either from hackers or from the volatility of the crypto market—depends on how you store them and your attitude to risk.

On the latter, no cryptocurrency is safe from market instability, and 2022 was the year in which crypto’s volatility was laid bare.

Over the years, bitcoin has seen numerous drawdowns of over 80%. Despite now sitting close to all time highs, many investors lost money as they decided to buy when the market was up and then sold when the price fell. Over the long run, almost all bitcoin buyers are in profit as long as they held and didn’t sell during a price correction.

When bitcoin falls in price, altcoins are generally hit even harder, with many having seen drawdowns as much as 99%. During the bear market of 2022, AI cryptocurrencies were hit hard. GRT fell from $US0.64 in January 2022 to $0.05 (-92%) in December 2023, while AGIX fell from $US0.20 to $US0.04 (-80%) over the same time period.

The digital asset world comes with inherent risks, and besides the crazy volatility that crypto investors must handle, there is also the risk of scams or theft. Crypto wallets and exchanges are likely to remain a target for criminals—leaving people’s assets at the mercy of the security that they and their exchanges implement.

Cold wallets, also called Hardware Wallets, are a hedge against hacks, but they become vulnerable once connected to a web-connected computer.

Meanwhile, exchanges continue to be attacked: a total of 483 Crypto.com users were hacked last year and lost assets worth up to US$35m. Exchanges after bolstering their security measures as hackers expose weaknesses, but it’s a cat-and-mouse game that looks certain to continue.

This article is not an endorsem*nt of any particular cryptocurrency, broker or exchange nor does it constitute a recommendation of cryptocurrency or CFDs as an investment class. Cryptocurrency is unregulated in Australia and your capital is at risk. Trading in contracts for difference (CFDs) is riskier than conventional share trading, not suitable for the majority of investors, and includes the potential for partial or total loss of capital. You should always consider whether you can afford to lose your money before deciding to trade in CFDs or cryptocurrency, and seek advice from an authorised financial advisor.