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

Date:

Written By:

Follow TheCryptoBasic

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. 

- Advertisement -

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. 

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.

More from Author

Latest Stories

Where is BNB Price Headed as $8.20M is Erased from the Market?

BNB technical indicators show the altcoin could experience further decline as liquidation events punish the bulls.  BNB, the native token of the Binance ecosystem, mirrors...

TRON Set to Challenge $0.30: Will Bullish Momentum Prevail?

TRON faces key resistance at its biweekly high, while liquidation data suggests critical levels that could influence price action. During this writing, TRON (TRX) trades...

Market Veteran: If Bitcoin Loses This Level, The Bear Market is Confirmed

Ki Young Ju, the CEO of CryptoQuant, has identified the level that, if lost, would confirm Bitcoin (BTC) has entered a bear market. The veteran...

Bitcoin Near $97,000 as Analyst Revisits 2022 Buy Zone Call – Is Now the Best Time to Buy?

Bitcoin dips to a six-month low after recent highs as crypto analyst Income Sharks reexamines a 2022 sub-$20K buy zone chart. Bitcoin is trading at...

Ethereum Closes in on Bitcoin Annual Performance Following Strong Q3

Market data shows that Ethereum, the king altcoin, has dramatically closed in on Bitcoin's annual performance following Q3 gains. Ethereum has nearly matched Bitcoin's annual...

Citibank Predicts Bitcoin to Hit $231K, Ethereum $7.5K in Months

Global banking giant Citibank has released new 12-month price targets for the world’s two largest cryptocurrencies — Bitcoin and Ethereum.  In a fresh report, Citibank...

XRP Price Run to $700–$1,000: Here Are the Timelines

Several experts have projected multiple timelines for XRP to reach a price range between $700 and $1,000 despite the audacious nature of these forecasts. XRP...

Here’s the Possible XRP Price if 7 XRP ETFs Get $600M Monthly Inflows for a Year

How could the XRP price react if the seven spot XRP ETFs command $600 million worth of monthly inflows for up to 12 months? The...

Own 1 Billion SHIB? Here’s How Much You’d Make if Shiba Inu Hits Half of its ATH

Investors holding 1 billion Shiba Inu tokens could realize substantial gains if SHIB climbs back to 50% of its previous all-time high.  Shiba Inu has...

Analyst Spots Potential Shiba Inu 150% to 500% Moves

Shiba Inu is approaching a major support level that an analyst says could set the stage for a significant bullish move. A TradingView crypto analyst,...

Here’s How Much Dogecoin You Need Today to Be a Millionaire by 2035

As the market dips, offering a chance to buy Dogecoin at discounted levels, we’ve estimated how much DOGE investors would need to hold to...

Expert Says Dogecoin is Ready for Historic 2,725% Rally, Shares Targets

Historical patterns suggest that Dogecoin (DOGE) may be positioning for a major rally, with a popular expert setting price targets as high as $5. This...

Guides