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- 1 By synthetic difference in difference methodology , the ChatGPT effect has been identified by the Blockchain Research Lab in Hamburg, Germany.
- 2 It shows that after the launch of ChatGPT ,average rise in returns related to AI crypto assets range between 10.7% and 15.6% in one month.
As per the report, there has been a boom in average returns related to AI linked crypto assets with the conclusion that AI linked crypto assets are progressing which results in higher market valuation.
AI cryptocurrency are the tokens that have an AI blockchain platform. To use the benefits of the platform, users have to spend tokens. The data clarified that the launch of ChatGPT has had a remarkable effect on the AI related cryptocurrencies. The analysis showed an average increase of 10.7% (35.5%) and 15.6% ( 41.3%) in the one-month (two-month) period after ChatGPT’s launch in 2022.
The 10.7% and 35.5% represents the floor price increase over one and two months, while 15.6% and 41.3% represents an increase in the ceiling price.
Growing Returns in AI Cryptocurrency Highlights Its Usage
The increase of returns in AI linked cryptocurrency has highlighted its usage and values it brings to the platform. According to market cap, the top 3 AI cryptocurrency projects are The Graph (GRT) with a market cap of $1.6 Billion, SingularityNET with a market cap of $300 Million, and Ocean Protocol with a market cap of $204 Million.
The functions of each project are further delineated. The Graph is protocol for indexing and querying data from blockchains. The SingularityNET permits the user to build, monetize, and share the AI services. The Ocean Protocol is an Ethereum based blockchain, allowing the individual to exchange data.
The launch of ChatGPT on 30 November, 2022 has advanced the use of Artificial Intelligence. Its wide popularity is due to its human-like response. Furthermore, it has illustrated its importance by successful completion of law and business school examinations.
ChatGPT Media Coverage behind Increased Returns of AI Crypto
The previous studies have highlighted the usage of ChatGPT in different fields of education, research, and software engineering. The increased usage with 1 Million users in just 5 days, and then, subsequently increasing the count to having 100 Million users by January 2023, makes clear that it has become the largest growing platform in today’s time.
Theoretically, the data suggested that another reason for an increase in AI cryptocurrency after the launch of ChatGPT is the media coverage of its launch. It is true that retail investors value AI assets more highly in accordance with the signaling theory. According to this theory, investors are biased according to the market psychology or trend. With such massive popularity, this might be the reason for investments in AI cryptocurrency.
The popularity of ChatGPT is one of the reasons for its impact on AI linked cryptocurrency. Cryptocurrency that is not related with AI has shown sideways trends or horizontal trends. The overall consequences of the market shows that Google searches for “crypto” are at a downfall. Since 2020,.the search for ’crypto’ is at its lowest level.
Nancy J. Allen is a crypto enthusiast, with a major in macroeconomics and minor in business statistics. She believes that cryptocurrencies inspire people to be their own banks, and step aside from traditional monetary exchange systems. She is also intrigued by blockchain technology and its functioning. She frequently researches, and posts content on the top altcoins, their theoretical working principles and technical price predictions.
