Grayscale Research has introduced the “AI Crypto Sector” as the sixth major category in the cryptocurrency market. This sector includes 20 tokens with a combined market capitalization of around $21 billion.
This figure marks a strong rise from just $4.5 billion in early 2023, showing the growing importance of AI-related crypto projects.
Artificial intelligence is one of the most vital technologies of our times. Yet, there are fears of control over the development of AI in the hands of one centralized entity.
Blockchain technology presents a decentralized alternative, which facilitates freer and more dispersed Artificial Intelligence development. For this reason, Grayscale Research decided to establish a separate area for AI for crypto assets.
Grayscale organizes cryptocurrencies into distinct categories called Crypto Sectors, similar to how stocks are grouped by industries.
Before this change, there were five sectors: Currencies, Smart Contract Platforms, Financials, Consumer & Culture, and Utilities & Services. Now, AI has its own sector, including tokens previously classified under other sectors but mainly focused on Artificial Intelligence applications.
Bittensor leads decentralized AI platform innovation
The largest token in this new sector is Bittensor, a platform designed to support global collaboration on Artificial Intelligence development. Near is another major project with the vision of becoming the most prominent blockchain platform for AI applications.
Grayscale provides investment access to the decentralized Artificial Intelligence sector through private offerings. These include the Grayscale Bittensor Trust and the Grayscale Decentralized Artificial Intelligence Fund.
The market is divided into three segments: Artificial Intelligence Platforms, which deliver infrastructure; AI Tools & Resources, providing the basic data and computing power; and Artificial Intelligence Apps & Agents, which are centered on user-oriented AI applications.
This growth is a demonstration of growing interest in decentralized AI projects as well as the promise blockchain holds to make Artificial Intelligence accessible and equitable.
Grayscale predicts this space will further grow and emphasizes the crucial role decentralized Artificial Intelligence can have in the future of technology.
