The Crypto AI Explosion
Discover more from The Gems Corner
The 25th edition of Gems Corner focuses on the AI Crypto narrative, including some of its major use cases. Enjoy the gems.
With every new wave of optimism or pessimism, we are ready to abandon history and time-tested principles, but we cling tenaciously and unquestioningly to our prejudices.
- Benjamin Graham.
In my opinion, AI and Crypto are the most disruptive technologies of the 21st century. Traditionally, AI has existed for decades, gradually transforming healthcare, retail, transportation, manufacturing, and several other industries.
Digitally, the advent of ChatGPT in 2022 unlocked new technological frontiers across different industries and attracted tons of investments in similar AI-powered tools. In fact, Goldman Sachs estimates that AI investments could hit $200B by 2025.
The crypto industry wasn't left out in the AI disruption. We now see innovative dapps and bots that leverage AI for efficiency and operations. Also, there's increasing investment interest in ai-powered dapps from top crypto VC firms.
Currently, the AI Crypto market cap is about $2.56B, with $GRT, $AGIX, $OCEAN, $FET & $DKA leading the ranks (underrated IMO). Even in a bear market, most of these top coins initially did above 400% gains. This sheds light on what will come in the bull run.
Still wondering how AI could impact crypto beyond token pumps? Let's analyze a few AI crypto case studies:
Smart contract developments
Automated investment strategies
Data Analytics
TG bots
Smart Contract Developments
AI is pushing the frontiers of smart contract developments with enhanced efficiency, accuracy, and security. It achieves these by leveraging Natural Language Processing (NLP), Machine Learning (ML) & Reinforcement Learning (RL).
For instance, GitHubCopilot turns NLP prompts into coding suggestions across dozens of coding languages. Having been trained by billions of lines of code. While OfficialMazzuma helps devs to generate smart contract codes for web3 dapps.
Automated Investment Strategies
There are a couple of ways in which defi dapps could use AI, but the vital ones are Automated Investment/Yield Strategies and Portfolio Management. All of which AI could perform without compromising security, transparency & decentralization.
One that readily comes to mind is Mozaic_Fi. Mozaic's Archimedes is an exciting AI tool that draws out asset predictions and allocates user'’ funds for the highest returns. He has been in an experimental phase and trained on historical data extracted from over 380 markets.
Archimedes carry out three vital roles:
Rebalance deposits across vault assets
Allocate the assets to the farms that will net the highest APY
Compound when assets are reallocated to a new farm
Data Analytics
Data analytics dapps could use AI intelligence to identify and predict market trends based on historical data. There's a high chance of accurate predictions because the crypto market moves in cycles, and past events will likely re-occur.
A quick example of this is KyberNetwork's KyberAI. KyberAI uses predictive analysis to provide insights on 4000+ tokens across 7 chains. You can use it to track the top traded tokens, trending soon, bullish, bearish tokens, and lots more. There's also Lore_Explore.
TG bots
A few weeks ago, the TG bots narrative was trending over the streets of Twitter, with many BOT tokens doing 500%. Most use AI automation to facilitate trades, token alerts, LP-ing, and other defi activities.
Although, the AI Crypto narrative is not without its shortcomings. Security, legal and ethical considerations are some of its primary shortcomings. As much as most AI tools have been trained with tons of data, there can still be some learning and predictive capacity gaps.
The Crypto AI narrative is still young. And there are still a couple of products under development. Early positioning is crucial in milking optimum gains from this narrative. Don't be a spectator; get involved.
Will be sharing more updates soon.
Friend Tech Invites…
I got some friend tech invites for those who need them.
Chart of the day
The price of Bitcoin has dropped below $26,00 for the first time in the last two months. Sources claim it’s because Elon Musk’s SpaceX sold $373M BTC they acquired in 2021-2022.
Regardless, dips are opportunities to acquire. Not financial advice.
Actionable Strikes
Layer3 announced OP Rush Campaign - link
Join the waitlist for The Fire Wallet (possible drop) - link
Sei’s airdrop is live - link
Gold Threads
Thanks for reading!
Until next Friday,
Viktor DeFi.
PS: I’d love to hear your feedback and comments.