TL;DR
- Decentralized artificial intelligence (AI) could reach a valuation of $1.8 trillion by 2025, according to analyst Miles Deutscher.
- The global AI market is expected to reach $12 trillion in the coming years, with 5% allocated to decentralized AI generating over $600 billion.
- AI crypto projects, such as Bittensor, Near Protocol, Grass, and Spectral, are positioned to lead this ecosystem.
Decentralized artificial intelligence (AI) is emerging as one of the most high-growth potential sectors in the crypto industry, with estimates suggesting it could reach a valuation of $1.8 trillion by 2025. This forecast comes from analyst Miles Deutscher, who recently shared his perspective on the convergence between blockchain and AI, uniting two of the most innovative sectors in the market.
Deutscher emphasizes that the opportunity within AI is enormous, as the global AI market is expected to reach a value of $12 trillion over the next six to seven years. If decentralized AI captures just 5% of this market, the valuation of AI crypto projects could exceed $600 billion. However, with a speculative approach, the analyst considers the real value could be much higher, reaching $1.8 trillion, which would represent a 45x growth from current levels.
Despite its potential, Deutscher points out that AI-related crypto projects are still underrepresented, ranking 34th by market capitalization in the crypto ecosystem. However, with growing interest in this sector, it is expected that AI projects will enter the top 10 in the next year.
Key Factors for the Success of AI and Blockchain
Deutscher identifies four key factors that will drive the adoption of AI within the crypto space. The first is the increase in public awareness of AI’s societal impact, which will generate greater overall interest. The second factor is the innovation in the field of AI, with new products and applications that will keep the sector in the public eye.
Third, the low entry barrier offered by cryptocurrencies provides retail investors with an accessible way to participate. Finally, the synergy between AI and blockchain, such as the use of autonomous AI agents to execute transactions and manage wallets, provides a practical integration of decentralized technologies.
Among the projects highlighted by Deutscher are Bittensor, Near Protocol, Grass, and Spectral, which lead decentralized AI infrastructure. These projects, ranging from AI research to the creation of autonomous agents and real-world data applications, are positioned to capitalize on the immense demand for AI-based solutions within the crypto ecosystem