Recent developments in artificial intelligence technology in the crypto space have caused quite a stir. On May 23, the Solana Foundation announced the Layer-1 blockchain of Solana had integrated a ChatGPT plugin. This plugin allows developers to use AI capabilities to build decentralized applications (Dapps).
The addition of AI to the crypto market has been seen as a potential windfall for the industry, with the AI-affiliated tokens experiencing a rally. This has prompted many to believe that this could be the next big thing for the crypto space.
The incorporation of the ChatGPT plugin indicates the importance of AI to Solana’s mission. Co-founder Anatoly Yakovenko believes that every developer creating consumer-oriented applications should acknowledge that AI will be part of the application development process. To spark more innovation in the field, Solana has also launched an AI accelerator program.
The effects of the AI developments on the crypto market have been seen in the Render token prices. Over the past 24 hours, the Render token has experienced an 11% rally, marking a new year-to-date high. This serves as a sign that AI tokens are still triggered by AI-related developments.
However, this rally leaves the token vulnerable to corrections. The Relative Strength Index (RSI) has reached the cusp of the overbought zone above 70.0, indicating that the market is overheated. If the support level of $2.398, coinciding with the April and 2023 highs, is breached, the token could suffer a further decline to the critical resistance of $1.985.
On May 23, French President Emmanuel Macron held a meeting with ChatGPT creator Sam Altman. According to Macron, developing talents and technologies pertaining to AI, as well as regulating it at the French, European, and global levels, are the country’s priorities.
With governments becoming more interested in AI development, the bubble of AI tokens could eventually reach its breaking point. This was the case with meme tokens, which stopped observing price jumps after every Elon Musk comment. Investors should be wary of when it comes to AI tokens, as they may soon hit the point of saturation.
About the Solana Foundation
The Solana Foundation is a non-profit organization dedicated to helping accelerate innovation across the blockchain and cryptocurrency industry. Its mission is to support open source and auditable blockchain technology, aiding in the development of decentralized financial ecosystems.
About Sam Altman
Sam Altman is the entrepreneur and investor behind ChatGPT, a natural language processing technology. Altman was chosen by President Emmanuel Macron to participate in a meeting to discuss AI and its regulation. He is also the founder of Y Combinator, a venture capital firm known for its accelerator program for startups.
