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HomeCrypto NewsMarketGrayscale Classifies XRP as a Currency Alongside Bitcoin as it Launches AI Crypto Sector

Grayscale Classifies XRP as a Currency Alongside Bitcoin as it Launches AI Crypto Sector

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Prominent digital asset manager Grayscale Investments has introduced a dedicated Artificial Intelligence (AI) sector within its Crypto Sectors framework. 

In a blog post yesterday, the Grayscale Research team emphasized that it created the new AI sector due to the niche’s explosive growth over the past two years. 

Grayscale’s newly created Artificial Intelligence Crypto Sector features 20 tokens, boasting a combined market capitalization of $21 billion. This represents a surge of 366.66% from the sector’s valuation of $4.5 billion, recorded in Q1 2023. 

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Following this remarkable growth, Grayscale characterized the Artificial Intelligence Crypto Sector as its sixth crypto segment. It is worth noting that the tokens in the new AI Crypto category focus on AI solutions. 

Tokens in Grayscale’s AI Sector 

The featured tokens include Bittensor (TAO), Render (RENDER), Worldcoin (WLD), Story Protocol (IP), Near (NEAR), Theta Network (THETA), AIOZ Network (AIOZ), Virtuals (VIRTUAL), Artificial Superintelligence Alliance (FET), and Grass (GRASS). 

Other tokens in the AI sector are Arkham Intelligence (ARKM), Kaito (KAITO), Golem (GLM), Akash (AKT), Livepeer (LPT), Venice.ai (VVV), Aethir (ATH), io.net (IO), ElizaOS (A16Z), and aixbt (AIXBT). 

Grayscale AI Crypto Sector Constituents
Grayscale AI Crypto Sector Constituents

At the time of Grayscale’s announcement, TAO ranks as the largest token by market cap in the category, with a valuation of $3.8 billion and a fully diluted market cap of $9.3 billion. 

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With Grayscale grouping these AI tokens into a specific category, investors can easily track the performance of the sector. They can also compare its performance with other sectors and decide how to allocate capital accordingly. 

Other Crypto Sectors Under Grayscale Framework 

Notably, Grayscale established the AI Crypto Sector using its proprietary Crypto Sectors framework. The investment company utilizes the framework to categorize crypto assets based on their respective functions. According to Grayscale, its Crypto Sectors framework is similar to the Global Industry Classification System (GICS), which categorizes public companies into various sectors. 

Currently, Grayscale categorizes the broader crypto market into six distinct sectors: currencies, financials, smart contract platforms, utilities and services, artificial intelligence, and Consumer & Culture. 

XRP and Bitcoin Classified as Currency 

Interestingly, Grayscale groups crypto tokens under these sectors based on their unique functions. For instance, digital assets like Bitcoin and XRP are placed in the Currency Sector. 

According to Grayscale, the Currency Sector comprises digital assets whose primary use case revolves around decentralized payments and stores of value. 

Grayscale Crypto Sectors
Grayscale Crypto Sectors

Notably, Bitcoin has long been seen as a store of value due to its capped supply and potential to appreciate in value over time. On the other hand, XRP is specifically known for its utility in cross-border settlements and has been leveraged for this purpose by top financial institutions. 

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Lele Jima
Lele Jima
Lele Jima is a cryptocurrency enthusiast and journalist who is focused on educating people about how the nascent asset class is transforming the world. Aside from cryptocurrency-related activities, Jima is a lover of sports and music.

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