Since the cryptocurrency is expected to develop in different sectors, analysts seem to be looking for that piece of technology to improve their understanding. It is believed that artificial intelligence (AI) can be the answer, to provide information based on the analysis of market data.
According to Fortune Business Insights, a market research firm, the global AI market is expected to grow from $387.45 billion in 2022 to $1,394.30 billion by 2029, at a compound annual growth rate (CAGR) of 20 ,one %. Experts believe that the AI sector will help the cryptocurrency economy evolve by creating market price indicators to help cryptocurrency investors. “I think AI has features, including pattern recognition, that can be used to drive the functionality of cryptocurrencies. The collaboration between AI and cryptocurrency is fairly new, but it has the potential to fight fraud and increase the speed of transactions. However, cost will be a key factor to consider,” Prashant Kumar, founder and CEO of weTrade, a cryptocurrency-based platform, told FE Blockchain.
Market-oriented research has shown that the coexistence of AI and decentralized finance (DeFi) can increase the efficiency of financial transactions and reduce fraudulent activities in the decentralized landscape. As stated by Analytics Steps, an information services company, data scientists can use AI to provide trading insights to cryptocurrency users and help analyze sentiment around the digital currency landscape. Additionally, AI can help infuse liquidity and reduce volatility in the Bitcoin market.
“Current applications of AI in DeFi technologies are only scratching the surface, especially as the amount of accessible data grows and types of DeFi services proliferate. I hope that the combination of AI, big data and cloud computing will create opportunities for both predicting market behavior and creating more sophisticated DeFi models,” said Pratik Gauri, founder and CEO of 5ire, a platform based on blockchain.
Companies like Fetch.ai, Hudson River Trading, Jane Street, among others are reportedly using AI-based applications in crypto practices. Platforms like TradeConnect use machine learning algorithms to help clients find the right broker and bank for digital currency-oriented transactions. Global sectors such as finance, e-commerce, investment firms, among others, can benefit in this context.
Furthermore, future predictions indicate that AI-based developments will help monitor cryptocurrency market price fluctuations through trading bots. Insights from Analytics Vidhya, a data-driven insight portal, highlighted that while AI has limitations and the cryptocurrency market faces uncertainty, a cryptobot's accuracy can be bolstered by stability between efficiency and timeliness. real value. “I think it is difficult to make accurate predictions about the future of AI in the cryptocurrency market, as it is a rapidly evolving field with many uncertainties. However, AI is likely to continue to play an important role in cryptocurrency investing and trading, as well as other areas of the financial industry,” said Sathvik Vishwanath, founder and CEO of Unocoin, a cryptocurrency exchange.
