Funding for AI-related Web3 projects reached $298 million in 2023, surpassing the total for the previous seven years ($148.5 million), according to analysts at Binance Research.
In the United States, amid a decline in venture investments in the industry, the share of the AI sector increased by 230%, reaching approximately 26%.
Funding for artificial intelligence startups fell by 6% compared to a 65% drop in the overall figure. In terms of completed rounds, the dynamics were -55% and -45%, respectively.
“These figures may indicate a strong belief in the long-term potential and viability of artificial intelligence technologies and applications,” analysts stated.
The conclusion is based on comparing the global funding for AI startups in 2023 ($298 million) with the cumulative figure for the previous seven years ($148.5 million).
As a result, the artificial intelligence sector ranked seventh in terms of Web3 investments, surpassing segments like NFTs ($293 million) and DAOs ($42 million), with a share of 3.7%.
“The figure might seem ‘modest’, considering AI only began gaining significant momentum in 2023. This substantial growth in funding underscores the sector’s growing recognition and value,” specialists noted.
AI Token Rally
AI tokens overall showed positive dynamics in 2023. The five largest coins by market capitalization significantly outperformed Bitcoin (150%) and Ethereum (44%), reaching peaks ranging from 200% to 650%.
According to Dune Analytics, AI tokens ranked second in category dynamics over the past three months. Analysts noted that meme tokens were excluded from the sample due to their relatively low capitalization.
“Overall, artificial intelligence is gaining significant popularity. The adoption of AI applications is accelerating, attracting sustained interest from investors,” experts concluded.
CoinGecko highlighted artificial intelligence alongside GameFi and meme tokens as major trends of 2023.