AI cryptos continue to sizzle with the market sector up over 51% in the past week

The market sector of AI crypto continues to sizzle, with the top 30 tokens all in the green over the last 30 days, a trend that has left many investors wondering: how frothy can this top possibly get? 

The news comes on the heels of the widely successful launch of ChatGPT, backed to the tune of $10 billion by Microsoft (a significant portion of which comes in the form of cloud computing credits, via Microsoft’s Azure cloud platform); as well as a renewed push by Alphabet Inc. (Google’s parent company), who late last week reportedly committed to also invest at least $400 million in a ChatGPT rival, Anthropic.

ChatGPT is already upending many work flows and industries. It was the quickest app to achieve a 1 million downloads, a feat it achieved only five days after launch last December. It has also been integrated into Microsoft’s Teams, allowing the tool to act as a powerful virtual agent and office assistant.

The meteoric rise of the AI crypto sector also comes as institutional investors continue to look more deeply into the sector. In Cathie Wood’s recent ARK Invest report, for example, she cited the confluence of AI and blockchain as part of a broader shift in the coming years that will see investors increasingly look toward disruptive innovations in both sectors. 

Other analysts, however, are more skeptical.

According to a recent JP Morgan report, which drew from a survey of 835 institutional investors across 60 global markets, more than half of those surveyed said that they believe AI and machine learning will be the single most impactful technology in the coming years. That same survey, however, put shade on institutional investment in crypto, with nearly three out of four respondents saying that they “have no plans to trade crypto.” 

So what explains the recent rise in price of AI cryptos? Let’s look at some of the underlying…