$158M Boost for AI Protocol After Fair Launch

A new computing protocol named AO, which utilizes Arweave’s permanent data storage layer, has garnered significant attention, accumulating over $158 million in deposits just a week after its ‘fair launch.’ AO aims to revolutionize the way artificial intelligence (AI) applications are run by employing a decentralized computational model that supports parallel application processing. This innovation allows AI applications, including large language models (LLMs), to operate on-chain within smart contracts.

The remarkable success of AO and the rapid influx of deposits are seen as indicators of the technology sector’s thirst for novel solutions. Sam Williams, the founder of Arweave, emphasized this observation. According to Williams, the launch of AO has spurred a substantial amount of development, user engagement, and enthusiasm. He stated that this excitement is mirrored in the rapid increase of the network’s Total Value Locked (TVL). The industry appears eager for advancements both technologically and economically within blockchain networks, and AO aims to satisfy that demand.

A significant portion of the $158 million in total deposits went into AO tokens, particularly with $48 million worth of stETH being recorded on June 18. Aside from implementing an innovative parallel computing approach, AO’s ‘fair launch’ model also contributed to its success. This model involves launching the token without any input from venture capitalists (VCs) or pre-sale and pre-mining allocations, ensuring that 100% of the token supply is distributed to the community. According to Williams, this fair launch model aligns with cryptocurrency’s foundational principles of fair and equal access.

In a broader context, the fair launch of AO seeks to address many core issues that have hindered the widespread adoption of cryptocurrencies. Williams noted that AO’s technology aims to solve these problems, which is why they designed the token’s economic model to be also fair and equitable. He emphasized that the initiative provides equal access to all participants without any preferential treatment.

The resurgence of interest in AI-related cryptocurrencies in 2024 has further contributed to the excitement surrounding AO. Investors are continuously looking for the next groundbreaking AI applications, which has kept AI-related cryptocurrencies in the limelight. For instance, some leading AI-based cryptocurrencies began their recovery on June 20, following significant drops in the previous week.

Notably, the Near Protocol token saw an intraday recovery of over 8.4% after experiencing nearly a 13% decline the previous week. The Fetch.ai (FET) token also experienced a notable rise, surging over 23% within 24 hours. Similarly, the SingularityNet (AGIX) token jumped over 23% in the same period.

This renewed interest has also impacted trading volumes and market capitalizations. The total trading volume of AI-based cryptocurrencies grew by over 14%, reaching $2.68 billion. Their combined market capitalization also saw an increase of over 7%, rising to $30.9 billion.

AO’s launch on Arweave’s platform has marked a significant milestone in the intersection of AI and blockchain technology. With a keen focus on fair and equal access, AO is set to meet the growing demand for innovative technological and economic solutions within the industry. The overall revival of AI-related cryptocurrencies further underscores the sector’s readiness for new and impactful advancements.