AI Tokens Fueled by “Ghibli” Frenzy Amidst Downturn
By Shikha Singh
So folks, with the incredible trend going on, you must have already created your own Ghibli-themed images. If not, give it a try; the effort is worth the fun. Meanwhile, the AI market continues to evolve with its usual twists and turns. While the overall market is a bit sluggish, the rise in AI tokens has been fueled by the “Ghibli” craze.
Elon Musk, Tesla’s czar and senior advisor to US President Donald Trump, along with Binance’s CZ, has joined the trend, further fueling the excitement. As a result, OpenAI and Grok’s AI image generation feature went viral, flooding social media with Ghibli-style images. The demand for these images has grown so high that the company’s GPUs have overheated, leading to temporary restrictions on image generation for free-tier users. However, paid subscribers still have access to the tool.
In other news, OpenAI’s CEO, Sam Altman, has announced that OpenAI will launch an “open-weight” version of its language model this year, allowing developers to run it on their own hardware. This new model will be the first open-weight release since GPT-2, meaning that developers will have access to the model’s internal settings (weights) and be able to modify or use it according to their needs, which is a positive development for the overall industry.
As for AI tokens, the sector is facing a downturn, with several top tokens experiencing double-digit losses, and the market cap has dropped by $4 billion. Some of the worst-performing AI tokens include Nillion (NIL), which has lost 46.4%, AI Rig Complex (ARC), down 35.4%, TARS AI (TAI), losing 31.7%, and Virtuals Protocol (VIRTUAL), which has fallen by 29%. The overall market cap for AI tokens now stands at $26 billion.
Despite this, some tokens have managed to avoid the downturn. AI16z, for example, saw an 18% increase after the founder, Shaw, announced the launch of its platform, auto.fun, in two weeks. Eliza v2 is also ready, and marketing, announcements, and the official go-live will start soon.
Bittensor, which is up by 6%, is benefiting from a partnership with Innerworks, an online platform focused on enhancing user experience through fraud-resistance mechanisms. Bittensor is a leading Layer One blockchain focused on AI.
Grass Token, with a market cap of $434 million, is also up by 5%. The reason for this is its unique model: if your data or Wi-Fi bandwidth is unused and you lend it to Grass Protocol, you get rewarded in Grass tokens. It’s a great concept.
Another unique model is DeXe. The DeXe Protocol helps you build and run your own DAO in a fair way, where everyone gets to vote and decide the outcome. It also provides analysis of your DAO’s performance. As a result, DeXe is up by 4%, with a market cap of $1.52 billion.
Another remarkable AI protocol is Beldex, which not only stores your data but also analyzes it and suggests how you can enhance it. Beldex also has a secure browser that provides a decent summary of most websites, so you don’t have to read them in detail. This is a highly useful feature if it meets users’ expectations.
With so many utilities, it’s no surprise that industry participants are giving AI tokens a big thumbs-up. HTX Ventures Head Alec Goh has stated, “The convergence of AI Agents and Web3 holds transformative potential, but the industry must avoid common crypto pitfalls to fully realize this potential.”
As AI continues to evolve, it’s clear that we are on the brink of transformative changes, but navigating these waters with caution will be key to long-term success.
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