It has only been six months since the initial release of ChatGPT, but already the world of crypto investing has been turned upside down. Every week, it seems, there are new efforts to bring ChatGPT-inspired functionality to crypto investors.
But which cryptocurrencies are poised to benefit the most from the rise of artificial intelligence? Two cryptos that stand out are Solana (CRYPTO: SOL) and Cardano (CRYPTO: ADA). Both have historically taken a back seat to rival Ethereum (CRYPTO: ETH), but that could change soon, thanks to AI.
Solana
Solana is a highly diversified Layer 1 blockchain network, similar to Ethereum. What this means in practical terms is that Solana is involved in just about every aspect of the blockchain and crypto world, from non-fungible tokens (NFTs) to decentralized finance (DeFi). And that creates an enormous amount of data for AI to digest, track, and analyze.
With generative AI programs such as ChatGPT, it will soon be possible to ask questions about this data, and receive answers in natural language format. With that goal in mind, Solana is working on a new ChatGPT integration. This plug-in is similar to the one that top e-commerce and travel brands are also working on to bring ChatGPT to their users.
Once this integration goes live, it will open up the world of Solana's blockchain data to ChatGPT. Instead of spending hours and hours analyzing this data, you will simply be able to ask questions like, "Why is Solana's NFT sales volume down this quarter?" Another experiment involves a ChatGPT-powered bot that is capable of carrying out actions on the Solana blockchain, such as purchasing non-fungible tokens (NFTs). All of this could lead to much greater mainstream adoption for Solana, as well as a higher valuation.
Cardano
Cardano also is a top Layer 1 blockchain network, but has always had a hard time telling its story of patient, long-term growth to investors. While Cardano has been around since 2017, it has never risen higher than $3.10. You will probably never read a story along the lines of, "If you had invested $100 in Cardano back in 2017, you would have $1 million today." That's because Cardano trades at about $0.32, almost the same price five years ago.
However, the future price of Cardano could get a real boost from recent efforts to integrate the worlds of AI and crypto. For example, how many people know that SingularityNET -- the most popular AI crypto token in the world right now with a market capitalization of $300 million -- is now a crypto token on the Cardano blockchain? How many people know that Cardano is working on a Layer 2 blockchain project that is specifically designed for the next wave of AI crypto tokens? If Cardano ever becomes the go-to blockchain for AI, this crypto might just turn out to be a hidden gem.
Before you invest with ChatGPT...
The most common misperception about ChatGPT is that it can somehow predict the future. Thus, social media is filled with stories about ChatGPT supposedly forecasting the price of a certain crypto by a certain date. In fact, right now, you can find stories about ChatGPT predicting the future prices of both Solana and Cardano.
Image source: Getty Images.
But that's not what ChatGPT was designed to do. In fact, when ChatGPT first launched, its founders specifically limited its ability to give investment advice. Any so-called ChatGPT price predictions actually rely on an unauthorized "jailbroken" version of ChatGPT.
Moreover, remember that any generative AI program is always limited by the data that it is trained on. When ChatGPT first introduced at the end of 2022, it was only trained on data from 2021 and earlier. But a lot obviously happened last year that might be of interest to crypto investors.
What happens next with AI?
We are only now scratching the surface of what's possible with AI. Already, Wall Street firms are working on their own AI investment advisors powered by ChatGPT. At the same time, individual investors are using computer code from ChatGPT to create sophisticated trading bots.
With any groundbreaking innovation, there are always winners and losers. Cryptos that take the lead now with AI could be big winners later. And Solana and Cardano could be ready for takeoff if the AI innovation boom continues.
