After a month of decline, the AI sector ushered in a general rise at the beginning of this month. In less than a week, AI tokens such as WLD, ARKM, NFP, FET, and RNDR have all increased by 35%-50%, leading other sectors of altcoins, and the rate of increase is comparable to the AI boom in early February.

The combination of AI x Crypto has just begun. Whether it is looking for Alpha projects with long-term development potential, or relying on speed and information gap to rush into the "dog plate", or following good leading projects to obtain stable returns, there will be good returns on investment.

BlockBeats sorted out the alpha dynamics worth paying attention to in the AIxCrypto field last week, as follows.

  Small-cap AI projects that have "resurrected from the dead"

Zero1 (DEAI): Announces points plan, with the largest weekly increase of 64%

BlockBeats has introduced Zero1's LBP situation in previous weekly reports. Its token DEAI has risen nearly 10 times since its launch two weeks ago, with a market value of over $100 million, but it continued to fall in the last month's decline, with a drop of more than 60%. Since May 1, DEAI has stopped its decline and ushered in an upward trend. The largest increase in recent days is 64%, and it is $0.67 at the time of writing.

Zero1 is a decentralized artificial intelligence (DeAI) ecosystem based on PoS and focused on data governance. It aims to build an AI Dapp incentive market and give token incentives based on the usage of applications. Zero1 announced the incubation of its first AI project, Seraphnet (0,1), in early April, aiming to build a modular network of efficient and customizable GenAI applications.

On May 3, Zero1 announced that it was working with multiple AI projects and introduced a points program. Users who previously participated in DEAI staking will receive varying points based on their staking duration (March, June or September) and staking funds. The points earned will be used to obtain token shares of the incubation project Seraphnet (0,1). As of the time of writing, there are more than 28 million DEAI participating in staking, accounting for 29% of the total circulation.

Ora Protocol (OLM): Launched AI Oracle Tool, Weekly Increase of Over 300%

On May 3, the distributed AI model project Ora Protocol announced a partnership with Manta to launch Onchain AI Oracle (OAO), an on-chain artificial intelligence oracle that empowers DeFi. Manta developers can use OAO to build LLM-driven on-chain applications.

In early April, the modular blockchain Manta announced a partnership with Ora Protocol, Celestia, and others to launch an AI toolkit to empower ecological development. The Onchain AI Oracle (OAO) launched by Ora Protocol this time will introduce Llama2, Stable Diffusion, and Grok to the chain, and innovate DeFi protocols such as AMM, lending protocols, aggregators, and stablecoins through AI technology.

Ora Protocol does not have a governance token yet. As an AI model incentive market, Ora has conducted an IMO for the AI model OpenLM. The token OLM has increased nearly 40 times after it went online. After the heat, OLM fell by more than 80% in the next two weeks. With the update of new project dynamics, OLM has increased by more than 300% in the past week and is $0.038 at the time of writing.

DeepSouth AI (SOUTH): Surviving AI dog, weekly increase exceeds 90%

BlockBeats introduced DeepSouth AI a week ago. As a survivor of the "AI MEME" bubble burst, DeepSouth AI is special in that it has launched interactive AI applications. Two weeks ago, it launched Generation AI with two major functions, image generation and intelligent dialogue. It is reported that Generation AI can read media data uploaded by users, generate descriptive text, and provide audio recordings. The AI dialogue function provides users with four different language models including ChatGPT 4, Mixtral, LLaMA 2, and Taτsu.

DeepSouth AI successfully "renewed its life" during the cold market by launching practical and interactive products. Not only did it not return to zero, but it also gained more than 70%. On May 3, DeepSouth AI announced that Generation AI will integrate two different image generators, DALL·E 3 from OpenAI and Corcel from Bittensor subnet 19; in terms of intelligent dialogue functions, the team announced an upgrade from Llama 2 to the new Llama 3 language model recently released by Meta. The constantly updated dynamics have driven SOUTH to continue to rise, with an increase of more than 90% in the past week.

In addition, like most startup "AI MEMEs", the DeepSouth AI team set a 5% transaction tax, but often temporarily cancels the transaction tax on weekends or when the project achieves a "milestone" achievement.

Potential AI project dynamics worth paying attention to

"Bittensor fork" Commune.ai releases new proposal, token weekly increase 80%

Commune.AI is an AI project that appeared in the fourth quarter of 2023. Its founder is physicist and engineer Sal Vivona, who participated in the development of Bittensor and is also a member of the OpenTensor Foundation. He then withdrew from the foundation to fully operate Commune.AI. The Commune.AI token economics are similar to Bittensor. COMAI has no pre-mining, which means that the founders mine in the open network like everyone else. Emissions are distributed 50/50 between validators and miners.

At the beginning of Commune.AI, there were many discussions in the community comparing Bittensor and Commune.AI. In general, Commune AI's token economics is more complex. Each node in the Bittensor network operates independently, and nodes are rewarded according to their contributions, thereby building an ecosystem with a healthy competitive relationship; while Commune AI introduces module blocks as core units to encourage developers to study more adaptable and scalable machine learning models.

Commune.AI token COMAI broke through $4 more than two months ago, and then gradually fell to around $0.8. In the past week, COM AI has risen by more than 80%, and is $1.51 at the time of writing. The reason behind the increase is not only the overall recovery of the AI sector, but also the proposal announced by Commune.AI on May 3. After the proposal is passed, the token share obtained by the subnet founder will be as low as 8%, which can promote the enthusiasm of developers to participate in the construction of subnets. The corresponding share of Bittensor is 18%. In addition, the registration fee for subnets will increase from 2.5 COMAI to 10 COMAI.

Solana Ecosystem AI Project Kuzco Releases New Version to Adapt to Windows System

Kuczo is an aggregator based on Solana that utilizes idle GPU computing power. What is noteworthy about Kuzco is that its official Twitter account has been followed by Coinbase founder Conor, Solana officials, Solana founder Toly, and Jito founder buffalu. Compared with the popular AI project IO.net of the Sol system, Kuzco is slightly less well-known, but like the former, the Kuzco Worker software can run on a computer equipped with a GPU, and users provide their own GPU resources to assist in processing reasoning tasks for models such as Llama2 and Mistral.

Currently, Kuczo can adapt to systems including Mac, Windows, and Linux. Kuzco released Kuzco v0.0.2 on May 3. The new version update features include support for Windows desktop, support for AMD GPU, improved CLI stability, and a new hosting infrastructure. Users who are using Kuczo need to download the latest version, and the registrant points of the old version will stop accumulating until the user updates the software.

As of writing, there are 1,437 active registered users on Kuczo.

Virtual Protocol for GameFi Launches Subnet 25 on Bittensor

Virtual Protocol focuses on creating AI characters for various virtual worlds and has launched a mechanism to encourage community members to participate in the project as contributors and validators. Users can improve and create new AI models by providing and reviewing data, and receive rewards for doing so.

On May 5, Virtual announced the launch of Audio-to-Animation (A2A), which will participate in the Bittensor ecosystem as Subnet 25. Audio-to-Animation (A2A), also known as audio-driven animation, is the generation of visual effects that dynamically respond to audio input. The technology is specifically used to animate the body movements of characters and is used in live broadcasting, virtual companions, education, game agents and other fields. The core contributors of the A2A subnet include Matthew Stewart (PhD from Harvard University and Research Director of MLCommons), Bryan Lim (PhD from Imperial College), Phil Wick and the Virtual Protocol team.

Virtual’s highlight is that it is positioned to serve those Gamefi projects that want to combine AI technology. Virtual charges fees after cooperating with games and distributes the income according to the incentive mechanism. From the perspective of token trends, VIRTUAL has not kept up with this week’s rise after falling more than 50% in the past month. As of writing, it is $0.11, with a fluctuation range of no more than 5% in just one week.

AI game chain Nim Network is launched on the mainnet and will conduct IMO

On May 1, Dymension-based AI game chain Nim was launched on the mainnet. According to its token economics, the initial circulation of NIM is 18% of the total. The issuance rate of NIM tokens is set at an annual interest rate of 4%, half of which will be distributed as staking rewards and half will be locked in a community-managed pool. As of writing, the token NIM is quoted at $0.17.

NIM Network's partners include the decentralized data sharing protocol OceanProtocol, the on-chain competition platform JokeRace and the Web3 social simulation game Today and the Polygon modular blockchain project Avail. Similar to Ora Protocol, Nim Network officials said that it will launch the first IMO shortly after the mainnet is launched. Users who stake NIM will receive a token allocation at the time of the IMO in addition to the reward allocation.

AIxCrypto is still a hot topic in the crypto field that cannot be ignored in 2024. After a small wave of "bull and bear", whether the AI sector can replicate the upward trend two months ago, and what new narrative will emerge, BlockBeats will continue to pay attention and update.

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