Following the launch of ChatGPT, AI-related crypto returns increased to 41%: Report

According to a recent study by researchers at the Blockchain Research Lab in Hamburg, Germany, the introduction of ChatGPT by OpenAI signalled a turning point for cryptocurrency assets related to artificial intelligence (AI). 

When ChatGPT was introduced in November 2022, it immediately rose to become one of the fastest growing AI generative platforms with the highest growth rates in history. The chatbot was said to surpass one million daily users in just five days and reaching 100 million monthly users by January 2023. 

ChatGPT launch impacted AI crypto assets 

Since OpenAI hasn't provided any official user data as of June 2023, it's difficult to estimate the precise number of monthly users the programme now supports. According to some reports, the website currently receives an estimated one billion monthly website visitors, and holds an estimation to reach one billion in revenue by the end of 2024. 

Researchers are of the opinion that, despite the broader cryptocurrency market being in a gloomy state and risk-averse investor appetites, the ChatGPT launch had a substantial impact on the performance of AI-related crypto-assets. AI cryptocurrencies are tokens that power AI blockchain platforms such as The Graph, SingularityNET and others. 

The performance of AI and non-AI cryptocurrencies. Source: Saggu and Ante, 2023: “The influence of ChatGPT on artificial intelligence related crypto assets: Evidence from a synthetic control analysis”

"Using synthetic difference-in-differences, we found average price increases of at least 10.7% (35.5%) in the one-month (two-month) period following the launch," stated the researchers. 

Media hype and increasing investor’s confidence considered as key factors 

The research further highlighted the reason behind increasing value of crypto assets to be linked with the investors who perceived AI-related crypto assets as possessing heightened potential or value after the launch and cites media and marketing hype as contributing factors to the increase.

The analysis suggests that these elements may have influenced institutional investors to shift funding to big-tech AI projects. The researchers speculate that this change may have led to retail investors imitating it and making investments in cryptocurrencies that are both directly and indirectly related to the field of artificial intelligence.

As an educational tool, ChatGPT is speculated to have abilities to foster information diffusion effects in the crypto market by equipping retail investors with the capacity to make them understand complex and technical concepts, and thus ensuring more informed investment decisions, mentioned the researchers.