The United States’ largest cryptocurrency exchange Coinbase has stated that the prices of artificial intelligence altcoins are exaggerated.
According to a report prepared by Coinbase’s research analyst David Han, the recent price hikes seen in artificial intelligence-focused altcoins have reached levels that are exaggerated compared to actual usage.
David Han indicated that the projects are in fierce competition and facing technical issues. The analyst also mentioned that despite the intense interest in the artificial intelligence industry having an impact on prices, many tokens may face short-term and medium-term demand-related issues.
The report, which states that artificial intelligence-focused altcoins have outperformed the overall cryptocurrency market so far in 2024, indicated that the source of this increase is NVIDIA.
Han emphasized that considering the current market situation, prices could rise even further, but exaggerated expectations could lead to a price correction.
Speaking specifically about the artificial intelligence altcoin Akash Network (AKT), Han noted that sudden negative developments could occur, and the price is starting to experience increased demand-related issues.
