Grayscale Names 3 Cryptocurrencies Riding the AI Wave

Grayscale Explores the Intersection of AI and Crypto

Artificial intelligence is expanding rapidly across the globe. This boom requires immense amounts of clean training data and powerful computer hardware like graphics processing units.

In an October 23 research note, Zach Pandl, Head of Research at Grayscale, highlighted three cryptocurrencies addressing these infrastructure needs.

These three projects target distinct parts of the AI ecosystem: DATA NetworkDATA-1.54%, USD.AI (CHIP), and Pearl (PEARL). However, their market prices show vastly different trends.

1. DATA Network (DATA): Monetizing AI Training Data

AI models need massive datasets containing images, videos, and audio clips to learn effectively. DATA Network helps collect this information with permission.

The platform licenses this verified data directly to AI developers while rewarding the contributors who supply it.

On October 12, the SuiSUI-2.72% Foundation announced a $30 million investment into the network. DATA also announced plans to migrate to the Sui blockchain through a one-for-one token swap.

Despite these developments, the token price has struggled. DATA declined 42.07% over 90 days to $0.15243, which includes a 34.65% drop over the past month.

Past performance of digital assets is not a guarantee of future returns.

2. USD.AI (CHIP): Financing High-Demand AI Hardware

Building AI infrastructure requires expensive graphics processing chips. USD.AI provides a blockchain-based solution for companies to secure financing.

Through decentralized lending pools, computing firms can borrow funds against their physical hardware and future earnings.

Backing for this model came in August when institutional entity Bullish announced a $100 million financing facility to support USD.AI GPU loans.

The token CHIP gained 47.98% over a 90-day period, reaching $0.04386. However, it remains roughly 69% below its previous peak recorded in April.

3. Pearl (PEARL): Combining AI Compute with Proof-of-Work

Pearl takes a unique approach by merging AI workloads with traditional blockchain mining. Compute providers can process AI tasks while earning network rewards.

PEARL experienced a strong price surge, rising 528.24% over 90 days to $2.00, with year-to-date gains exceeding 240%. It recently pulled back 19% from its October 21 peak of $2.46.

Investors should note specific tokenomic factors. An estimated 1.2 million new tokens enter daily circulation, which could create ongoing selling pressure.

Additionally, Pearl holds a fully diluted valuation of $4.2 billion compared to its circulating market cap of $713 million, indicating substantial future token unlock potential.

Grayscale's Perspective on AI Crypto Growth

Grayscale sees meaningful long-term potential in combining frontier technologies like AI with blockchain infrastructure.

Their long-term relevance will depend on adoption and competitive economics. We are keeping an eye on them.

As crypto and AI continue to overlap, tracking token supply models, real-world adoption, and market risk remains essential for evaluating these emerging projects.