Shocking AI Crypto Surge: From Pennies to Billions in Just Two Years! 💰🚀

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Well, well, well! It appears that the market capitalization of tokens in the artificial intelligence (AI) crypto sector has taken a rather impressive leap from a modest $4.5 billion in 2023 to a staggering $20 billion in the blink of an eye—just two years, mind you! However, before we pop the champagne, it seems growth has hit a bit of a snag this year. Our star performer, Bittensor’s TAO, has managed a dazzling 2% growth, while poor Elizaos has taken a nosedive of 80%. Talk about a rollercoaster ride! 🎢

Bittensor Halving Event

According to the esteemed Grayscale Research (who, I must say, have a knack for the dramatic), the market capitalization of tokens in this AI crypto sector has ballooned nearly fivefold from $4.5 billion in 2023 to a jaw-dropping $20 billion thus far. Yet, since the dawn of 2025, the growth has been as lively as a sloth on a Sunday stroll. Bittensor’s TAO, the heavyweight champion of AI assets by circulating market cap, has only managed to grow by a paltry 2%. Meanwhile, Elizaos, bless its heart, is down by a staggering 80%. One might say it’s having a bit of a crisis! 😅

But fear not, dear reader! Despite this rather underwhelming performance, the Grayscale Research report assures us that the subsector is on the brink of further growth. They point to Bittensor’s first “halving” event, which is set to occur later this year, and the burgeoning interest in AI applications on the network—known as subnets. Since the February launch of the dTAO upgrade, which made subnets investible for the first time (a round of applause, please!), the share of circulating TAO allocated to subnets has climbed to more than 7%. Quite the achievement, I must say!

In addition to the growth of subnet TAO emissions, the report highlights distributed training as another promising area for the AI crypto sector. To illustrate this potential, they cite Prime Intellect, which has successfully trained models larger than 30 billion parameters using distributed GPUs. If that doesn’t sound impressive, I don’t know what does! According to the report, Prime Intellect’s success using decentralized infrastructure may indicate that the AI landscape is on the cusp of a major shake-up. Hold onto your hats, folks! 🎩

“At scale, we believe these types of protocols could have a substantial impact on the AI landscape by tapping into the roughly 30% idle compute capacity sitting in data centers, potentially reducing both the costs and barriers to entry for AI model training,” the Grayscale Research report boldly states. Quite the ambitious claim, wouldn’t you agree?

Prime Intellect, along with Gensyn and Nous Research (who recently raised a cool $50 million via a Series A funding round—impressive, eh?), are identified in the report as protocols likely to bolster the AI crypto sector. It’s a veritable who’s who of the crypto world!

Lastly, the Grayscale Research report also identifies one protocol, Grass network, which has the uncanny ability to generate tens of millions in annualized revenue from selling scraped web data to AI labs. Now that’s a business model that could make one’s head spin! The potential regulatory clarity on stablecoins is also cited as another reason for optimism. However, the report does caution investors to keep a keen eye on regulatory developments, including the GENIUS stablecoin bill for clues. Because, as we all know, nothing says “fun” like keeping tabs on regulations! 🧐

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2025-05-29 01:57