The upward trend in the cryptocurrency market continues. Although Bitcoin touched its $69,000 ATH and started to decline, the altcoin market remains active.
At this point, especially while artificial intelligence altcoins stand out with their rapid rise, the fact that Nvidia, the world's number one artificial intelligence chip manufacturer, will hold a conference on March 18-21 was effective in the rise of artificial intelligence-themed altcoins.
While this conference of Nvidia increased the interest in the artificial intelligence sector, altcoins such as FET, RNDR, ARKM attracted attention with their rise.
However, Coinbase, the largest US cryptocurrency exchange, warned against the rise in artificial intelligence (AI) tokens.
While Coinbase research analyst David Han argued in his latest report that AI-related tokens may be overhyped in the short to medium term, he said many of the rapid changes in the AI industry should be cautious about the long-term sustainability of the AI token.
Coinbase analyst David Han noted that AI-themed altcoins face tough competition and technical hurdles that could significantly hinder their progress, writing:
“Our view is that the value potential of many AI tokens may be exaggerated as a result of the broad interest in the AI industry and that many AI tokens may lack sustainable demand-side drivers in the short to medium term.
At this point, as Coinbase, we think that the rise in AI tokens is not sustainable due to some obstacles.
“At this point, investors need to be careful with AI tokens.”
*This is not investment advice.