Top DePIN x AI Projects to Watch in the Second Half of 2024
AI trends have been leading the wave of technology worldwide. It's no coincidence that in recent weeks (as of 13/06/2024), NVIDIA, the leading AI chip manufacturer, has surpassed Apple's market capitalization. Indeed, AI will continue to dominate the narrative, attracting investment flows for years to come.
But have you ever wondered why AI is highly valued by massive corporations? And how is AI infiltrating the crypto market? What are the key projects to watch in the second half of 2024? Let's explore these questions through this article.
Why is AI so hot?
The technology narrative is always appealing
Back in 2016-2017, the phrase I heard most at economic seminars in Vietnam was "Industry 4.0." Globally, discussions about blockchain began to increase.
In 2020-2021, when the Covid pandemic hit, tech giants, specifically Meta (formerly Facebook), initiated the vision of the Metaverse. Then, at the end of 2022, when ChatGPT was officially launched, the world went crazy over the groundbreaking advancements of AI.
Each year, tech stories are pushed by large companies. However, the practical applications of these technologies are undeniably attractive.
For example, as a content creator, tasks that used to take me a whole day to research now only take about 2 hours with AI. Labor productivity has significantly improved.
In reality, AI is gradually becoming a competitive tool among businesses, ensuring significant investment in this field.
High labor costs
On 07/06/2024, US non-farm and average hourly earning data were published, showing higher-than-forecast income levels. Meanwhile, the unemployment rate rose to 4.0%, above the forecast of 3.9%.
These figures indicate that the majority with lower skill levels are unemployed, leaving key positions with high salaries. High labor costs and the need to handle repetitive tasks drive large companies to invest heavily in technology, particularly AI.
It's no coincidence that big tech stocks have grown rapidly, breaking old records during 2023-2024. For example:
- Apple's stock returned to its 2021 peak in May 2023 and is now 20% higher.
- NVIDIA's stock also returned to its 2021 peak in May 2023 and is now 263% higher.
AI is hotter than ever, not just in traditional markets but also in the Crypto market, attracting significant interest and investment.
AI in Crypto
As business tasks become increasingly complex, AI models require more computing resources, sometimes exponentially. Classic cases needing substantial computing power include deep learning, autonomous driving, and AI agents.
However, computing power is a bottleneck limiting AI's development. Corporations aiming to lead in AI or Machine Learning must invest heavily in computing resources, leading to a surge in GPU demand. GPUs are crucial for AI data processing, explaining NVIDIA's strong growth, surpassing Apple's position in the stock market recently.
Yet, GPUs are an expensive arena for large enterprises, making it hard for SMEs to compete due to the high costs. This situation gives rise to a highly potential niche in the Crypto market: decentralized computing. This is the intersection of the DePIN and AI trends I aim to analyze.
Decentralized computing deploys models using GPU clusters worldwide at a fraction of the cost of centralized services like Google Cloud or AWS.
Let's highlight some prominent names in this trend.
Notable DePIN x AI Projects
You can refer to these projects, but remember to do your own research (DYOR) to make informed decisions. This article is for informational purposes and is not investment advice.
Masa Network (MASA)
Masa Network is a personal data exchange platform between Web3 users and AI businesses/projects worldwide. Think of Masa as a data marketplace.
What problem is Masa solving?
The security of personal information when using social media and Web3. Previously, big tech companies treated user data as their asset, but now they must pay to buy/rent this data for AI training. Conversely, users own their data and earn passive income from it.
Masa Network won two major Web3 competitions, Binance MVB Incubator and CoinList Seed Incubator, raising $9.4 million from notable investors in the Crypto market.
Since its launch in Q3/2022, Masa has achieved impressive results with over 1.2 million active wallets, 23 million data points, 70+ ecosystem partners, and support for over 8 blockchains, making it a key player in the DePIN x AI trend.
Aethir (ATH)
Aethir, a decentralized computing infrastructure specifically for AI/Gaming enterprises, has been making waves recently.
Aethir's model aggregates idle GPUs from various sources, distributing them to those needing GPU resources, termed GPU-as-a-service in Crypto.
Aethir helps developers cut costs in data processing and storage, enhancing the gaming experience for end-users. The project is listed on major exchanges like Bybit, Okx, and Kucoin.
Covalent (CQT)
Covalent, a project from the 2020-2021 cycle, provides Web3 data infrastructure for AI. Surviving the harsh 2022-2023 downtrend, Covalent is expanding its AI services, aligning with market trends.
Supporting over 225 networks, Covalent recently recorded 300 million active wallet addresses interacting with its data, up 20% from last year. It launched the Ethereum Wayback Machine, an on-chain data tracking service.
On 11/06/2024, Arthur Hayes, BitMEX Co-founder, became a strategic advisor to Covalent, valuing $CQT and opting to be compensated in this token.
Kip Protocol (KIP)
Kip Protocol provides data infrastructure for AI training, known as knowledge assets. Winning the Chainlink Hackathon 2023, KIP raised $140,000 from node sales and received investments from funds like Animoca Brands and SkyVision.
One notable partner is Masa Network. This collaboration between Animoca Brands’ highlighted projects is highly anticipated.
Io.net (IO)
Io.net describes itself as the Internet of GPUs, a cloud computing network providing computational power for AI/ML companies.
The project raised $30 million in a Series A round from prominent Crypto funds like Multicoin Capital, OKX Ventures, HackVC (lead), and Animoca Brands. Io.net was featured on Binance Launchpool #55, attracting significant investor attention.
Conclusion
We've highlighted notable projects in the DePIN x AI trend, particularly decentralized computing. From my perspective, the AI trend will continue and likely explode further from now until the end of 2024.
With GPU supply still not meeting actual demand, the above projects are poised to benefit with sustainable growth potential. Nonetheless, don't forget to research thoroughly for a comprehensive view. What projects are you closely following? Share in the comments to discuss with the TradeCoinVN community.
Note: This is sponsored content, not direct endorsement by TradeCoinVN. Readers should carefully research before making decisions and take responsibility for their actions. This content is not investment advice.
