AI Tokens Explained: The Future of Artificial Intelligence in Crypto

Artificial Intelligence (AI) is transforming every sector known to humans, from the finance sector to health. It is everywhere. AI is not just enhancing the potential of these sectors but also reshaping them into something better. Blockchain technology, which is a new phenomenon for many people, has now merged with AI to bring some magic to the decentralized finance (DeFi) sector. When we talk about blockchains, we know that crypto tokens are somewhere near in the picture. Here, we discuss the merger of artificial intelligence and blockchain technology and their final product, AI tokens.

The term “tokens” is typically used to refer to cryptocurrencies other than Bitcoin and Ethereum (which are ultimately tokens themselves), as these two are too significant to be categorized alongside other cryptocurrencies. With the rise of Bitcoin and Ethereum’s popularity, numerous new cryptocurrencies have emerged and minted on various blockchains; the term “token” is applied to cryptocurrencies such as Neon, Render, Ripple, and others. In this article, we will explore AI tokens, their advantages, and the potential they hold for the future.

Exploring the AI Crypto Coins

AI tokens are AI-powered cryptocurrencies that support AI-based projects, services, and applications within a decentralized ecosystem. Artificial Intelligence (AI) tokens primarily serve three purposes:

• Facilitating Payments in the AI Ecosystem: In exchange for services, applications, data, and information, users can initiate payments in AI tokens.
• Participating in Network Governance: Users who own AI tokens can participate in making decisions related to the AI ecosystem. This means, these token holders can make governance decisions to decide the future of AI projects.
• Incentivize Users: One significant feature of AI tokens is that participants receive AI tokens as rewards for contributing to AI projects. Their contribution can be through providing computational sources, app development, or data sharing.

 AI Tokens vs Cryptocurrencies

AI tokens and cryptocurrencies share only one similarity: both are minted/operated on a blockchain network. However, there are some differences, which we will explore in this section.

AI Tokens vs Cryptocurrencies: A Comparative Analysis

How Do AI Tokens Work?

• Artificial Intelligence (AI) tokens are created on blockchain platforms, especially Ethereum’s ERC-20 (a set of standard technical rules for creating a token) or BNB’s smart chain BEP-20.
• Smart contracts (self-executing) are created and used to define the purpose of AI tokens in AI-related services.
• After this, AI projects issue Artificial Intelligence (AI) tokens to the participants, which the holders can use to buy services, execute trading on various exchanges, and make decisions related to AI project governance. One of the primary significances of AI crypto coins is they foster decentralization and empower token holders to participate in significant decisions related to the AI project. Token holders can also use them to access ML models, data analysis, or other AI functionalities.
• AI projects also offer these AI tokens as rewards to users who contribute computing or data resources to the network.

Future of AI Tokens

AI tokens are receiving mixed reviews from market experts. According to a survey done in the United States of America, 49% of the surveyed people think that AI tokens will outperform other crypto coins, 41% people are unsure about the future of AI tokens, whereas 10% believe that AI tokens cannot outperform crypto coins.

Overall, the future of AI tokens looks promising, except for a few issues that need to be addressed. According to the survey, only less tech-savvy and less educated people are not willing to invest in tokens, which means the issue is about spreading awareness about AI tokens and their benefits. The respondents in the survey conveyed that the absence of trustworthy platforms is a reason for not investing in AI tokens. The volatility of the AI token market is also a reason behind this.

More than 60% of the population is projected to invest in Artificial Intelligence (AI) tokens in the future, which means people are supporting AI projects wholeheartedly, and AI tokens will grow multifold.

Benefits of Artificial Intelligence (AI) Tokens

Automatic Asset Management

The primary objective of asset management is to reduce risk to the bare minimum while maximizing profits. Asset management is the systematic process of developing, operating, maintaining, and selling assets cost-effectively. Artificial Intelligence (AI) tokens are designed to manage assets automatically without requiring any third-party involvement.

Advanced Security System

AI crypto coins are created on the blockchain, which means they are as secure as the blockchain on which they are created. Blockchains are immutable, as the data stored in the blocks are visible to everyone and cannot altered without changing data in other blocks. This feature makes the blockchains and the AI tokens created on them highly secure.

Faster and Cheaper

AI tokens operate on blockchain technology, enabling faster and cheaper transactions. In contrast, traditional payment methods often involve banks, which can charge fees and take time to process payments. With AI tokens, transactions occur instantly without the need for a bank or intermediary. This particularly benefits individuals or companies in different countries, as it eliminates concerns about currency exchange rates and lengthy delays.

Exclusive AI Services

Many AI projects reward their users for sharing data or computing services with the project. The users may receive educational advice from an educational platform as a reward for sharing data with them. Artificial Intelligence (AI) tokens make this exchange of exclusive services seamless and improve the overall user experience.

Foster Fund Raising

AI tokens can also support the growth of new AI projects. Businesses can raise funds for new AI projects by offering tokens to users. When users buy these tokens, they invest in the projects, helping them grow. This funding helps the project grow and enhance its services, creating a better AI ecosystem for everyone.

Top AI Crypto Coins To Look Out For In 2025

2025 is the year of artificial intelligence; technology in collaboration with AI will undoubtedly grow. Investing wisely in crypto or AI tokens is important to minimize the risk and maximize the returns. Delta6Labs  has conducted intensive market research and selected 5 AI tokens that investors need to watch:

Render

Render is the utility token of the Render network, a GPU-based solutions provider. It was launched in 2017 on Ethereum’s ERC-20, but the community of Render holders voted for the transition from Ethereum to Solana in 2023. It is used to pay for animation, motion graphics, and VFX rendering on the Render network.

Currently, Render has a market cap of $1.5 billion and a volume of $127M. Its total supply is 532.4M, and its circulating supply is 517.7M. It touched its all-time high of $3.17 in March 2024.

NEAR Protocol

The NEAR coin is the utility token of the Near Protocol blockchain network. It is an L-1 blockchain that uses the proof-of-stake consensus mechanism and is used for developing dApps. Near tokens can be used to exchange services from the Near Protocol network and make decisions about its governance. Users can also earn Near tokens as rewards for validating transactions in the Near Protocol network.

According to the token exchanges, NEAR has a market cap of $2.25B, a volume of $314.69, a total supply of 1.24B NEAR, and a circulating supply of 1.2B NEAR. Its highest price, reached in January 2022, is $20.42.

Bittensor

Bittensor (TAO) is the utility coin of the Bittensor network, a decentralized machine-learning protocol. Like other AI tokens, Bittensor allows its holders to participate in governance-related decisions. It was initially designed as a Polkadot parachain called Finney before it launched its Nakamoto chain in 2023.

TAO is currently priced between $190 and $220, with its highest price being $767.68 in April 2024. The total market cap of TAO is $1.66B and a circulating supply of 8.75M.

The Graph (GRT)

Gathering data is a complex, costly, and time-consuming process. The Graph indexes complex blockchain data into structured insights. Developers use the graph to easily access reliable on-chain data through custom feeds called subgraphs.

GRT, which is the utility token of The Graph, has a total market cap of $703.40, a circulating supply of 9.77B GRT, and a current price range of $0.06 to $0.07.

Theta

THETA is the utility coin of the Theta Network, a blockchain-powered cloud for AI, media, and entertainment. The Theta blockchain features a multi-level Byzantine Fault Tolerant (BFT) consensus mechanism that combines a group of 20 to 30 enterprise validator nodes with a second layer of thousands of community-operated guardian nodes. The Theta blockchain can process 1,000 transactions per second, and its consensus mechanism is fast, environmentally friendly, and has virtually zero carbon footprint.

THETA has a total market cap of $702.62 and a circulating supply of 1B THETA. It is currently priced between $0.6 and $0.7.

Final Words

The intersection of Artificial Intelligence (AI) and blockchain technology is revolutionizing the decentralized finance (DeFi) landscape, resulting in the emergence of AI tokens. Unlike traditional cryptocurrencies, which primarily function as mediums of exchange, AI tokens are specifically customized to facilitate payments within AI ecosystems, empower users through governance rights, and incentivize participation in AI projects by rewarding contributions with tokens.

AI crypto coins typically operate on blockchain networks such as Ethereum’s ERC-20 and BNB’s BEP-20 standards, utilizing smart contracts to define their purposes. They allow holders to engage in project governance, access machine learning models, and participate in data analysis, thereby fostering decentralization.

Despite mixed reviews from market experts about their potential, a survey shows that a significant portion of the population is optimistic about the future of AI tokens, with 60% expected to invest. However, challenges such as market volatility and the need for reliable platforms remain. Artificial Intelligence tokens provide several advantages, including automated asset management that reduces risks while maximizing profits and enhanced security through blockchain’s immutable nature. While awareness and education about AI tokens continue to be essential, their future looks promising as they gain traction in the digital economy.