5 Reasons Why AI-Blockchain Integration Will Drive Bitcoin To $70,000

• Bitcoin has touched the $44K mark, bringing its yearly gains to 156%.
• The market is ripe for further momentum, led by more altcoin rallies and some new entrants on the scene – AI tokens.

The Bitcoin halving narrative is playing strong, but we are here to investigate the long-term growth prospects of the OG coin led by the AI blockchain sector.

What happens when two brute forces – AI and Blockchain – combine? The biggest synergy of utilities takes place between the techs, and the advent of the Web4 era begins. While the hype around ChatGPT stole the sheen away from crypto projects for a while, the real deal is in the use cases blockchain projects are exploring by integrating AI/ML tech.

AI-based blockchains existed before the Open AI-ChatGPT rage and have been bringing mind-blowing utilities to the Web3 (or Web4) space. Here are five reasons why BTC will touch $70K sooner than you think, thanks to AI.

#1 Real-World Use Cases and Products

The amalgamation of AI, blockchain, and other emerging tech like IoT, Big Data, etc., has given birth to innovations bridging the existing divide between existing blockchain projects and real-world adoption.

Here are some of the most impactful projects active on the AI blockchain front:

DexCheck is an advanced analytics platform using AI and ML to help traders make informed trading decisions.  It analyzes data from DEXs and NFT markets to reveal predictive and sentiment analysis. Some of its other products include InsightsFPT, Crypto/NFT Traders Leaderboard, Address Analyzer, Whales Tracker,  Telegram Trading bots, and much more.

The Graph, just like Google, indexes and queries data from blockchains. SingularityNET allows users to build and monetize AI services. Ocean Protocol makes data a monetizable asset by making it available to researchers at a cost without the data owners losing ownership.

#2 Growth in AI-based Token Trading

AI-based crypto projects are seeing increasing interest from traders. Kaiko reports that the trading volume for AI-based tokens was $1 billion in October. But November saw the volumes spiking to over $3 billion weekly trading volumes – a 3x increase in just a month.

Render (RNDR), Worldcoin (WLD), and Fetch.ai (FET) were the most popular among traders. AI-focused crypto projects now collectively claim a market share of $10 billion.

#3 Future Potential of AI-based Blockchain Sector

The AI-led blockchain sector is estimated to grow at a CAGR of 20.71% from 2023 to 2032. Data from Santiment shows conversations around the potential of AI and RWAs in the blockchain are increasing among investors and traders.

AI remains one of the focal points in the financial sector, too, as ‘the next significant technological revolution.’ Innovative projects like DexCheck, The Graph, Render, Oasis, AGIX, Singularity Net, etc., are writing new chapters in the AI-blockchain marriage saga.

#4 Increased Investment Inflows

The involvement of tech giants like Microsoft, Google, and Anthropic to further progress the sector has led to an increase in the price of AI-focused cryptos and more investment inflows.

Jada, an AI project using blockchain tech to aid organizations in scaling up their operations, received $25 million in funding from alternative investment group LDA Capital.

Solana Foundation has announced $10 million in funding for AI-based blockchain projects. It also integrated a ChatGPT plugin to make it easier to understand Solana data and protocols or surface data about Solana’s computing infrastructure and DeFi projects.”

CryptoGPT, a ZK Layer-2 chain, raised $10 million in a series A funding round led by market maker DWF labs. The European Commission, in its recent recommendation, said that Europe needs to amp up its efforts to bridge the €10 billion investment gap holding back development and artificial intelligence and blockchain technologies.

#5 AI Addressing Security Concerns

Rug pulls and scams are an increasing menace in the crypto space. Hackers are getting better at exploiting smart contract codes. 2023 was the worst year in this regard. This is also partly why retail and institutional investors aren’t enthusiastic to enter the space. Lack of regulations and elevated risk levels are other concerns.

AI helps solve this issue by bringing natural language processing (NLP), real-time data transformation, image recognition, etc., to help blockchains turn into micro-economic environments that optimize data transactions using machine learning intelligence.

Projects like Dexcheck address security concerns by providing API services. The API helps auto-detect any potential risks or check real-time analytics related to contract code and transaction security.  Covalent aggregates data from multiple blockchains, which developers can leverage to build robust dApps.

AI-powered smart contracts and dApps are more sophisticated and intelligent to accommodate exceptions, detect fraud, add personalization, and enhance transaction efficiency.

It’s The AI Awakening For Crypto Sector

Given AI’s potential and impact on blockchain and crypto innovations, the AI-blockchain convergence is so wanted in the space. Web3 is still in its infancy, and regulations are a work in progress, but blockchain adoption by governments and enterprises will see a surge.

During an interview, Elon Musk said the world is less than 3 years away from AGI (Artificial General Intelligence), which will be able to write “as good a novel as J.K. Rowling, discover new physics, or invent new technology.”

The AI sector is the base camp for the most happening innovations, with blockchain bigwigs soaking their feet. The AI mania backed by blockchain aesthetics is fast catching, and there’s not much time before we see Bitcoin’s crown shared by AI tokens as well.

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