According to a study conducted by Blockchain Research Lab in Hamburg, Germany, the launch of OpenAI’s ChatGPT had a positive impact on cryptocurrency assets related to artificial intelligence (AI). ChatGPT saw rapid growth, reaching over 1 million daily users within five days of its launch in November 2022 and possibly reaching 1 billion users.
The app’s popularity had a ripple effect on various AI-related domains, including the cryptocurrency market. Despite the overall crypto market being in a bearish state and investors being cautious, the researchers observed a significant influence on the performance of AI-linked crypto assets.
Through a methodology called synthetic difference-in-differences, the study discovered that these assets experienced average price increases of at least 10.7% over a one-month period and 35.5% over a two-month period following the launch. The ceiling for price increases rose to 15.6% and 41.3%, respectively.
The research cites media and marketing hype and public sentiment as factors in the rise, concluding that investors perceived AI-related crypto assets as possessing heightened potential or value after the launch.
Furthermore, the study suggests that institutional investors may have shifted funding toward big-tech AI projects, which caused retail investors to follow suit and invest in cryptocurrencies directly and indirectly related to the AI space.
This study reveals the correlation between the launch of an AI app and the subsequent rise in cryptocurrency returns. The popularity of chatbots and AI-enabled apps is a trend that is likely to continue in the coming years. As a result, investors may pay more attention to AI-related cryptos when making investment decisions.
