May 27, 2023

The Reason AI Cryptocurrencies Are Outperforming Bitcoin

In the ever-evolving world of cryptocurrencies, new trends and innovations frequently capture the attention of investors. Recently, a series of AI-powered cryptocurrencies have been making waves in the market, outperforming the dominant player, Bitcoin. This remarkable performance can be attributed to several factors, including their innovative use cases, technological breakthroughs, and the growing role of artificial intelligence in various industries.

AI is a term that refers to the ability of computer systems to perform tasks in a way that resembles human intelligence. The idea behind it is that machines can learn from previous experiences and develop their own algorithms to help them solve problems.

In this article, we will discuss how artificial intelligence (AI) is being applied to cryptocurrencies, how it can impact your investments and what we expect from this trend in 2019.

What Are AI Cryptos

AI cryptos refer to cryptocurrencies that integrate artificial intelligence (AI) technology into their blockchain networks. AI cryptos merge the strengths of AI with those of the blockchain, providing programmers with a new environment in which to create useful software and services.

The potential of AI cryptos is to be a game-changer innovation that could usher in a new era of digital economy by enabling fundamental changes in the way people engage with technology. AI can be used to improve everything from security and scalability to user experience and market prediction in the context of cryptocurrency.

The blockchain technology used by AI cryptos makes for a trustworthy and decentralized transaction verification system. AI can also be used to improve the security and scalability of cryptocurrencies, as well as the user experience and market prediction. Some of the best AI crypto coins to invest in 2023 include SingularityNET (AGI), (FET), and Ocean Protocol (OCEAN).

Additionally, trading pairs could also play a role in the outperformance of AI cryptos. As CoinDesk explains, trading pairs such as BTC USDT are used to buy and sell cryptocurrencies on exchanges, where the BTC USDT chart can be seen and some cryptocurrencies can only be bought with other cryptocurrencies.

Will AI cryptocurrencies contribute to the next Bull Run?

AI is a new technology that is still in its infancy, but it has the potential to change the world. AI can be used to disrupt many industries and create new ones, including cryptocurrency.

AI cryptocurrencies have outperformed Bitcoin by more than 10x since January 2019! However, this isn’t the first time this has happened or even just this year; in fact, AI cryptos have been outperforming Bitcoin since late 2017 when they first started appearing on bitcoin exchange like KuCoin, Binance and Huobi Pro.

There is increasing speculation among cryptocurrency enthusiasts that cryptocurrencies with an AI focus may play a key role in starting the next bull market. This is due to the growing prominence of artificial intelligence (AI) in the blockchain sector, and many AI tokens have recently experienced significant price gains. According to top DeFi analysts, AI crypto will be the trend that fuels the next altcoin bull run.

How much influence can AI cryptocurrencies have on the total crypto market?

The AI cryptocurrency market is not a new phenomenon. It has been growing since July 2018 and shows no signs of slowing down. In fact, the price of many of these cryptocurrencies has risen faster than bitcoin’s price during this time period–and in some cases, much faster.

AI cryptocurrencies are a relatively new concept in the crypto market, but they are gaining popularity due to their potential to improve upon traditional cryptocurrencies like Bitcoin. The use cases for AI in cryptocurrency include fraud detection, risk protection, automation, improved customer experience, market sentiment analysis, security, and compliance.

As a result, AI-focused cryptocurrencies have been outperforming Bitcoin in recent years. However, the total impact that AI cryptocurrencies will have on the overall crypto market is difficult to predict.

The most interesting thing about this rise is that it can’t be explained by any single factor; instead, it appears to be a combination of several different factors working together:

  • The hype around blockchain technology (which was already high) has continued to grow as more people learn about how blockchains work and what they’re capable of doing for society at large
  • More developers are becoming interested in building on top of existing blockchains like Ethereum’s smart contracts platform or EOS’ dApp platform due to their ease-of-use relative to other platforms such as Bitcoin or Litecoin

Why are the prices of AI tokens surging?

The prices of AI tokens are surging due to increased investor interest and the growing popularity of AI-related projects, apps, and services, such as decentralized AI marketplaces, AI-powered portfolio management, predictions, image generation, path finding, autonomous organizations, and more.

In particular, some AI tokens have seen significant gains in recent weeks, with some surging more than 20% in a single day. One example is the FET token, whose price has jumped 80% in the five days since Sunday and 30% in the past 24 hours alone. These trends have led some to speculate that AI-related cryptocurrencies may be once-in-a-decade investment opportunities.

Reasons why AI tokens are Outperforming Bitcoin

Artificial Intelligence (AI) focused cryptocurrencies are outperforming Bitcoin due to several factors. Increased interest in AI, market hype, speculation, and an increase in AI use cases have influenced their price rises. Institutional interest in AI has also played a significant role in the surge of AI-based cryptocurrencies

They’re a new way to invest in AI technology: Traditionally, if you wanted to invest in a company developing artificial intelligence (AI), you would purchase shares on the stock market.

One major reason is that AI has numerous use cases such as fraud detection, risk protection, automation, improved customer experience, market sentiment analysis, security, and compliance.

Another reason driving the prices of AI tokens high is speculation. Crypto markets are known to be fueled by narratives, and artificial intelligence is the latest trend. Prominent traders on Crypto Twitter are heralding AI-based tokens as the sector to watch.

Key Factors Contributing To The Success of Ai Cryptos

AI tokens are outperforming Bitcoin for several reasons, one of which is they offer a new way to invest in the burgeoning AI technology sector. Here are some key factors contributing to the success of AI tokens:

Exposure to AI innovations: AI tokens allow investors to gain exposure to the growth potential of the AI industry. By investing in AI tokens, investors are betting on the success of AI projects and platforms that drive technological advancements.

Diversification: AI tokens provide an alternative investment option for cryptocurrency enthusiasts looking to diversify their portfolios. Adding AI tokens to a traditional crypto portfolio can help investors mitigate risks and capitalize on the potential growth within the AI sector.

Enhanced functionality: AI tokens often offer advanced features compared to traditional cryptocurrencies like Bitcoin. These features may include improved security, scalability, and efficiency, as well as the integration of machine learning algorithms and other AI-driven technologies.

Market demand: As the AI sector grows, the demand for AI tokens increases, driving up their value. Investors who recognize the potential of AI technologies are more likely to invest in AI tokens, contributing to their outperformance.

Real-world applications: AI tokens are often linked to platforms or projects with practical applications, helping to bridge the gap between the crypto world and real-world use cases. This adds value to the tokens and can contribute to their success in the market.


AI-focused cryptocurrencies have been outperforming Bitcoin in recent months. The reasons for this include increased interest in artificial intelligence, market hype, speculation, and an increase in AI use cases, which have influenced the price rises of these tokens. Institutional interest in artificial intelligence has also contributed to the price spikes. In contrast, Bitcoin’s price is down 35% on the year.

About the author 

Peter Hatch

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