Cryptocurrencies that have integrated artificial intelligence (AI) or plan to do so have been soaring in popularity.

The fast-paced expansion and development of AI have generated considerable interest, controversy, and fear among the public, especially tech enthusiasts, investors, and even government officials and politicians. Projects like OpenAI’s ChatGPT, as well as its numerous alternatives, have been making headlines left and right, and this has inevitably impacted the crypto industry.

This can be reminiscent of Bitcoin and the early creation of the decentralized finance (DeFi) market.

But as with the broader cryptocurrency market, AI-focused projects have also increased in their numbers and identifying the legitimate and promising ones can be a bit challenging.

That’s why, in this guide, we take a closer look at the top AI-based crypto protocols that you should have on your watch list.

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What is AI Crypto?

Before proceeding, let’s briefly explain AI crypto and why this sector has blossomed in the last few years.

At the forefront of crypto, AI crypto projects appreciated substantially, especially in the first quarter of 2024. The reason is not just hype; the combination of AI and blockchain technology has opened several windows of new use cases and applications for finance, data storage, cloud computing, and much more.

In decentralized finance (DeFi), for example, we can see different types of dApps using AI. Decentralized exchanges (DEXs) can use AI to facilitate trade automation through algorithms (as many automated market makers do).

AI can also improve the screening process for smart contracts, allowing founders to spot potential threats and vulnerabilities. In another example, AI is frequently used to produce generative art NFT projects, such as Interactive Non-Fungible Tokens (iNFTs), which incorporate intelligent traits and reasoning abilities.

There are currently hundreds of AI-based crypto projects, each targeting a specific market within and outside the space.

Best AI Crypto Projects to Watch This Year

Fetch.ai (FET)

Fetch.ai is one of the top crypto AI projects boasting billions in total market capitalization.

It allows users to leverage resources and tools to build and monetize their AI-powered crypto apps and services. However, one feature that distinguishes Fetch is autonomous economic agents.

These agents, which can be devices, services, organizations, or individuals, are capable of performing various tasks such as processing and sharing data among IoT (Internet of Things) devices, executing crypto transactions for users, and facilitating trades and swaps on decentralized exchanges like Uniswap through crypto trading bots.

The protocol operates on its own blockchain, powered by its utility token, FET. A unique aspect of its blockchain is its mixed consensus: Proof-of-Work (PoW) and Proof-of-Stake (PoS), in which miners validate transaction blocks and agents earn fees for executing multiple AI-related tasks.

For developers, Fetch offers a comprehensive suite of tools, including AI, Web3, and blockchain infrastructure, resources, and extensive documentation to create decentralized AI projects.

Likewise, Fetch also features the Open Economic Framework (OEF), an AI-driven layer that stores information for agents. This layer allows agents to interact and source information while nodes (miners) are rewarded with FET for facilitating these interactions.

Founders of Fetch.ai

Fetch.ai was founded in 2017 by:

Humayun Sheikh is a tech entrepreneur and previous founding investor in DeepMind (Google DeepMind).

Toby Simpson, another co-founder, has a background in software design, previously working at DeepMind as well. Thomas Hain, the third co-founder, is an academic with expertise in machine learning and artificial intelligence.​

Funding

Fetch.ai has raised approximately $115.9 million in funding, including various rounds and notable investments, such as $40 million from DWF Labs in early 2024 (Pitchbook).

Notable Milestones

• Partnered with Singularity NET and Ocean Protocol, two prominent crypto AI projects, to launch the Superintelligence Alliance, merging AGIX, OCEAN, and FET into a single token called $ASI (Artificial Superintelligence).
• Launch of DeltaV: the launch of DeltaV meant a significant milestone for Fetch.ai. This feature simplifies complex tasks and enhances user experiences through AI-powered chat interfaces. It allows users to process everyday practical tasks, such as holiday bookings and finding electric vehicle charging points. Next to Agentverse and AI Engine, the chat system is part of the v0.21 release
• Raised over $40 million in funding from high-profile investors in early 2023.
• Main sponsor of London Tech Week for 2024.
• Became the largest crypto AI token by market capitalization by early 2024.

NEAR Protocol (NEAR)

NEAR Protocol is a layer-1 blockchain designed to provide a scalable and developer-friendly platform for building decentralized applications (dApps). It aims to overcome the limitations of other blockchain networks, such as Ethereum, by offering higher transaction speeds, lower costs, and improved usability.

It uses a unique technology called sharding to enhance its scalability and performance. Sharding involves splitting the network into smaller, manageable pieces called shards, each of which processes a portion of the network’s transactions in parallel. This architecture, known as Nightshade, allows NEAR to handle a large number of transactions per second — potentially up to 100,000 transactions per second (TPS) — while maintaining security and efficiency.

Another notable aspect of NEAR is its consensus mechanism — Thresholded Proof-of-Stake (TPoS).

The TPoS algorithm is quite similar to Delegated Proof-of-Stake (DPoS) in which validators are selected to process transactions and create new blocks based on the amount of NEAR tokens they stake. This system not only secures the network but also ensures decentralization by allowing anyone to participate as a validator. However, there are notable differences that can be read here.

Founders of NEAR Protocol

Behind NEAR is Alexander Skidanov and Ilya Polosukhin, who first launched the protocol as NEAR.ai.

Prior to founding NEAR, Skidanov worked as a software engineer at Microsoft and later joined MemSQL as a Director of Engineering.

Polosukhin has a background in artificial intelligence and machine learning. He previously worked at Google, where he was involved in several significant projects, including TensorFlow.

Funding

According to Cruchbase, Near Protocol has received $1.1 billion in funding from notable VCs, including Blockchange Ventures, ParaFi Capital, Hashed, MetaWeb Ventures.

Notable Milestones

• Over $1B in funding from over 60 investors, making it one of the top-funded crypto protocols.
• As part of its roadmap for 2024, the protocol rolled out User-Owned AI, a research and development lab for decentralized AI.

Render Network (RNDR)

Render Network is an Ethereum-based blockchain platform that aims to decentralize GPU cloud rendering by connecting those who need rendering services with owners of high-performance GPUs.

It is one of the top Solana projects.

This system enables artists, individuals, and companies to carry out rendering tasks more affordably and quickly than traditional centralized options.

The platform operates as follows: creators submit rendering jobs, and node operators use their spare GPU capacity to complete these jobs and earn RNDR tokens as compensation. Render Network supports a range of tasks, from basic rendering for gaming and entertainment to complex projects involving AI and machine learning.

The protocol also implements a tiered pricing system based on the reputation of node operators. The highest-rated operators fall into tier 1 and are typically the most expensive but offer more reliable and scalable services, often used by Render’s partners.

Tier 2 provides high-quality services at a reduced cost, and Tier 3 offers the most economical options, but reliability and scalability are not the highest-rated. This pricing structure supports the democratization of GPU cloud computing, particularly for Web3 creators, by adapting to various budget needs.

Founders of Render Network

The Render Network (RNDR) was founded by Jules Urbach, who is also the founder and CEO of OTOY, Inc., a cloud graphics company. The core team includes:

• Kalin Stoyanchev — Head of Blockchain
• Joshua Bijak — Project Lead, Charlie Wallace as the Chief Technology Officer,
• Phillip Gara — Director of Strategy
• Jayson Kleinman — Head of Business Development​.

Funding

Render Network completed one round of fundraising. According to CoinCarp, the protocol brought in $30 million from a Seed round on December 21, 2021, from venture capital firms like Multicoin Capital and Solana Foundation and angel investors like Vinny Lingham.

Notable Milestones

• OctaneX is the spectrally-correct GPU production renderer for iPad.
• Raised roughly $30 million in 2018.
• Became one of the most sought-after rendering solutions for intensive rendering work in 2023 and early 2024, with the Render Network experiencing a 31% increase in RNDR

The Graph (GRT)

The Graph is a decentralized, open-source indexing protocol that collects, processes, and stores information and data similarly to a web browser like Google.

It allows users to navigate and explore different blockchain ecosystems and their respective dApps. The Graph is also available in at least 14 languages.

One of the key features of The Graph is Subgraphs, which are indices designed to enhance data querying for users across several networks, including EVM-compatible blockchains and even the InterPlanetary File System (IPFS).

Subgraphs can index all public information globally, bridging the gap between Web2 and Web3. This data can be stored, organized, and shared across applications, making it accessible for anyone to query. Naturally, users pay using the protocol’s native coin, GRT.

GRT has one of the largest supplies in the AI sector, with a max supply of 10,799,004,319 tokens and approximately 9.5 billion tokens in circulation.

Founders of the Graph

The Graph (GRT) was founded in 2018 by Yaniv Tal, Brandon Ramirez, and Jannis Pohlmann.

Yaniv Tal has a background in engineering and is renowned tech entrepreneur. Along with Ramirez and Pohlmann, Tal aimed to develop the first decentralized indexing and querying protocol for blockchain data to simplify the development of dApps.

Before founding The Graph, Yaniv Tal and Brandon Ramirez worked together at MuleSoft, a company specializing in enterprise integration, which was later acquired by Salesforce.

Funding

The verified funding rounds for The Graph are a $5.2 million seed round in July 2020, a $12 million public token sale in October 2020, an undisclosed seed round in January 2019, and a $205 million ecosystem fund raise in February 2022 led by several major investors.

Notable Milestones

• The protocol recently expanded to decentralized AI, creating Agentc, a ChatGPT-like tool with open-source code.
• It released the Sunrise Upgrade Program as part of the protocol’s roadmap, allowing users to perform certain tasks and earn GRT as reward.

BitTensor (TAO)

BitTensor is an open-source infrastructure built around a blockchain called Subtensor. It utilizes a unique consensus mechanism called Proof-of-Intelligence (PoI).

This mechanism resembles Proof-of-Work (PoW) by rewarding miners for their valuable contributions across various technology and research domains within the BitTensor network.

BitTensor functions as a decentralized marketplace with multiple subnets, each designed for specific tasks. Unlike parallel chains in systems like Avalanche, these subnets are competitive marketplaces tailored for AI, machine learning, data storage, price feeds, cellular automation, and more.

A notable example of a subnet in BitTensor is Decentralized AI Detection, where miners are incentivized to share findings, solutions, products, tools, and frameworks to help the network detect content generated by large language models (LLMs) like ChatGPT.

Anyone can create a subnet by paying a registration fee in TAO, BitTensor’s native token, and establish incentive mechanisms for miners and validators. Each subnet has validators who assess the quality of miners’ work and reward them with TAO.

BitTensor aims to democratize and commoditize AI and emerging technologies through blockchain technology.

Founders of BitTensor

The founders of BitTensor are Jacob Steeves and Ala Shaabana.

• Jacob Steeves has a Mathematics and Computer Science background from Simon Fraser University and has previously worked as a Software Engineer at Google.
• Ala Shaabana holds a PhD in Computer Science from McMaster University and has served as an Assistant Professor at the University of Toronto​.

Funding

BitTensor was incubated by Polychain Capital, one of the largest crypto venture firms in the industry, and has invested over $200 million into the project.

Notable Milestones

• Released the BitTensor Language Model (BTLM) in cooperation with Cerebras.
• Became one of the largest AI crypto projects by democratizing and commoditizing AI and Machine Learning models.
• Is backed by Digital Currency Group (DCG), Polychain Capital, and Firstmark.

Akash Network (AKT)

Akash Network is one of the top AI crypto coins that introduces a cloud-computing marketplace where users can buy and sell cloud resources using AKT as the payment method.

Akash Network rose to prominence as one of the largest AI crypto coins thanks to its simple business model: users needing cloud computing can purchase resources from those with extra capacity, all in a peer-to-peer manner.

The platform’s main competitive edge is its ability to provide decentralized storage and asset ownership at a lower cost than traditional centralized systems, appealing to both businesses and individuals.

Akash has formed partnerships with leading institutions in the crypto space, such as Coinbase Prime, which offers custodial services for AKT, and Solve.Care, a blockchain-based healthcare platform aimed at decentralizing patient data and integrating blockchain benefits into healthcare systems.

Akash utilizes the Interplanetary File System (IPFS) for decentralized storage due to its enhanced security and resistance to censorship.

The rise in popularity of DeCloud (decentralized cloud), AI, and ML protocols has driven increased usage and renewed investor interest in Akash and similar AI coins.

Founders of Akash Network

Akash Network was founded by Greg Osuri and Adam Bozanich. Here’s a more detailed breakdown:

• Greg Osuri: Co-founder and CEO of Akash Network. Before founding Akash, he worked as a software engineer and entrepreneur. He founded AngelHack and was a contributor to the OpenStack project.
• Adam Bozanich: Co-founder and CTO. He has experience in software development and previously worked at Symantec.
• Bassel Menzalji: Co-founder, his previous experiences include business development and management roles.
• Gregory Gopman: Co-founder with a background in marketing and community building, Gopman is known for his work with AngelHack and Twitter.

Funding

Amount Raised: Akash Network has raised approximately $26.2 million over several funding rounds, including a notable $20 million Series A round led by Andreessen Horowitz in March 2021.

Notable Milestones

2024 has been a year of notable partnerships for Akash Network, which means the protocol has been adopted by platforms from several industries, including adoption in multiple industries, not just AI.

For instance, the protocol is collaborating with Solve.Care, an advanced blockchain-based healthcare platform.

By utilizing Akash’s decentralized compute resources, Solve.Care aims to provide patients with true ownership of their data while enhancing the security, transparency, and accessibility of datasets and reducing administrative costs for companies.

Similarly, Passage, a web3 platform for content creators, leverages Akash Network to reduce hosting costs, enhance accessibility, and improve video and rendering quality.

AIOZ Network (AIOZ)

AIOZ Network, created by the tech company AIOZ, is a blockchain-based platform that aims to deliver scalable and reliable solutions in Web3 storage, AI computing, live streaming, and video on demand.

The company, founded by Erman Tjiputra, focuses on making AI development more democratic and decentralized through its two main offerings: the W3AI marketplace for AI computation and the Web3 AI Platform, which provides a variety of AI solutions for businesses, developers, and individuals.

AIOZ operates on the Cosmos network and is compatible with BEP and EVM, using a Delegated Proof-of-Stake (DPoS) consensus mechanism powered by Tendermint Core that allows for up to 1,500 transactions per second. Its Decentralized Content Delivery Network (dCDN) utilizes a global network of nodes to provide additional computing power.

The network offers a decentralized marketplace for the Decentralized Physical Infrastructure (DePIN) market, enabling contributors to monetize their AI-related assets and computing resources.

This setup offers competitive costs for cloud computing and allows for the deployment of AI applications, benefiting businesses and developers by providing cheaper alternatives to traditional infrastructures.

Founders of AIOZ

Erman Tjiputra is the founder of AIOZ Network alongside Quang D. Tran.

Before AIOZ, Tjiputra was involved in various entrepreneurial ventures and has a software development and blockchain technology background. Similarly, as a technical analyst, Tran was involved in numerous AI and Machine Learning projects.

Funding

AIOZ Network has raised a total of $1.35 million during its fundraising rounds. This includes a private sale and an initial coin offering (ICO) that took place on April 2, 2021.

Notable Milestones

Some of the most notable milestones for AIOZ Network so far in 2024:

• AIOZ Network is the first DePIN project to be listed on Nvidia’s Accelerated Applications Catalog, placing AIOZ next to industry giants such as Adobe, Epic Games, and Autodesk.
• AIOZ Network reached a milestone after the launch of the AIOZ Node V3 in Q1 2024, which enabled 160,000 network nodes to access a broader range of GPU and CPU resources.

SingularityNET (AGIX)

SingularityNET is a marketplace for AI products and services. It allows users to create their AI-powered models through the protocol’s blockchain, which offers smart contract templates for faster and easier development and deployment.

The platform allows developers to build AI models and systems or purchase existing ones to integrate into their projects, creating a decentralized AI ecosystem that benefits both projects and developers. These and other transactions on the platform are carried out using the protocol’s native token, AGIX.

SingularityNET is one of the AI crypto projects due to its extensive offerings, featuring over 70 AI-powered services. These include:

• Domain-Specific Language (DSL): a self-organizing network of AI agents that can delegate tasks to each other.
• OpenCog Hyperon: an open-source general AI system based on OpenCog, a framework for developing AI models, robotics, and virtual embodied cognition.
• Training AI models: users can train and customize AI models for various services based on specific needs.
• Other services include speech command recognition, neural image generation, multilingual speech translators, real-time voice cloning, and more.

Founders of SingularityNET

SingularityNET was founded by Dr. Ben Goertzel and Dr. David Hanson.

Dr. Goertzel is a renowned AI researcher and author. He has previously worked on various AI projects and is known for his work with OpenCog and Hanson Robotics.

Meanwhile, Dr. Hanson is a robotics scientist known for creating lifelike robots. He founded Hanson Robotics, where he developed the humanoid robot Sophia.

Funding

SingularityNET raised approximately $36 million in their initial coin offering (ICO) in December 2017. This funding has been crucial for developing their decentralized AI platform.

Notable Milestones

• It reached the top ten list of largest AI crypto coins by market capitalization, reaching over $1 billion in the first quarter of 2024.
• Its coin, AGIX, broke records after reaching an all-time high of $1.46 on March 10, 2024.
• The protocol partnered with Minswap, the largest decentralized exchange (DEX) on Cardano, to explore and develop multiple integrations that mix AI with DeFi.

Ocean Protocol (OCEAN)

Through AI-powered smart contracts, Ocean Protocol allows data suppliers to sell specific data directly to consumers. This data can be from multiple industries, including healthcare, politics, finance, e-commerce, and more.

Ocean Protocol is one of the OGs in AI-crypto. It was founded in 2017 by Bruce Pon, an entrepreneur who established BigchainDB, a blockchain database software company, and AI researcher Trent McConaghy, who holds a PhD in Creative AI.

Ocean Protocol offers other appealing features. One is the Ocean Predictoor, which allows users to run AI-powered prediction or trading bots on crypto price feeds to generate yields.

It supports Javascript and Python and provides builders with a library of resources and tools to build AI decentralized applications and APIs to monetize them. Developers can leverage many features, such as IP ownership, access licenses, payment routing, analytics for on-chain data, and more.

Founders of Ocean Protocol

The co-founders of Ocean Protocol are Bruce Pon and Trent McConaghy.

• Pon has 13 years of experience in blockchain, data, and AI. He previously co-founded BigChainDB, a blockchain database company.
• Meanwhile, McConaghy is an AI researcher and tech writer.

Funding

Ocean Protocol has raised more than $5 million over its various funding rounds. According to the sources, the total amount raised is approximately $39.19 million, which includes both public and private funding rounds. The confirmed investors include Cypher Capital (Dubai), Outlier Ventures, and Cogitent Ventures.

Notable Milestones

Below are some of the most notable milestones for Ocean Protocol in 2024:

• Part of the Superintelligence Allicance, with SingularityNET and Fetch.ai
• Partnership with NIM Network to bring AI to gaming, adding Ocean Protocol to the AI Gaming Coalition.
• Launch of Data Farming (DF) rewards for users, allowing them to earn OCEAN by making predictions via Ocean Predictoor.

How to Buy AI Crypto?

There are two main ways to buy AI crypto tokens. The first is through centralized exchanges like Binance.

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That said, once you have an account registered, you will need to navigate to the top of your main menu and in the right corner, click on the “depoist” button and select “buy crypto.”

From there, you will simply need to input your preferred currency and the cryptocurrency you want to buy. You can use a regular credit or debit card for this.

Alternative, you can also use a decentralized exchange (DEX), but that’s a more complicated process and would require more technical knowledge.

Is AI Good for Crypto?

AI and blockchain technology can synergize if both are used for their best purposes. As we’ve seen with the projects listed above, AI can be used for trading automation in a blockchain-based protocol, enhancing trading functions and price automation.

For crypto institutions, AI algorithms, through machine learning, are helping exchanges provide and fulfill trading orders quicker, develop chatbots that assist users, smart trading bots that can analyze market trends and predict price movements, and more.

Regarding security and on-chain analysis, blockchain firms can use AI to spot potential threats and vulnerabilities in a smart contract. Moreover, wallets and exchanges can use AI to detect suspicious activity or flag addresses that have been poisoned or belong to a malicious actor.

Even in mining, we see AI and crypto merging, as AI marketplaces can provide or optimize computing power allocation for users.

There are certain drawbacks, however, and we can summarise them as follows:

• Centralization: There’s a growing concern in the public that leading AI companies are working on their AI models behind closed doors, leaving investors and users out of the picture and raising concerns over the lack of transparency and power centralization. Projects like BitTensor try to democratize AI developments and innovation by rewarding users for sharing their discoveries and models.

• Black Box Problem: AI algorithms can be opaque, making it difficult to understand their decision-making processes. The black box problem refers to the challenge of transparency and interpretability of AI algorithms during their time of existence and may complicate/strain operations in crypto projects.

• New risk and security challenges: introducing AI in crypto could mean new risks and vulnerabilities that malicious actors can exploit.

Best AI Crypto Projects – Conclusion

There are multiple ways in which AI and crypto can work, from fraud detection, smart contract security, and on-chain analysis to cloud-based resources, mining, and trading optimization.

The marriage between AI and crypto has opened new windows of use cases and applications for multiple industries. However, their drawbacks must be addressed and analyzed thoroughly to mitigate their negative impact on users and investors.

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