{"id":9788,"date":"2025-01-27T05:47:33","date_gmt":"2025-01-27T05:47:33","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=9788"},"modified":"2025-01-27T05:47:33","modified_gmt":"2025-01-27T05:47:33","slug":"analysis-ai-tokens-are-the-real-losers-of-the-deepseek-revolution","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=9788","title":{"rendered":"ANALYSIS: AI Tokens Are the Real Losers of the DeepSeek Revolution"},"content":{"rendered":"
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Artificial Intelligence (AI) tokens are in the red during the Asia morning trading hours, with the CoinGecko category down 9%<\/a>, registering bigger losses than the CoinDesk 20<\/a> \u2013 a crypto index \u2013 which is down 5%.<\/p>\n

Crypto investors, like their traditional finance counterparts, are likely digesting the impact that DeepSeek, a new AI model, is having on the industry.<\/p>\n

Data from DeepSeek posted on Hugging Face<\/a>, a forum of the AI industry, shows that its model outperforms OpenAI, all while being built on a budget<\/a> of $6 million and a fraction<\/a> of the Graphics Processing Units (GPUs) that OpenAI uses \u2013 which recently closed a $6.6 billion round with a valuation of over $157 billion.<\/p>\n

Perhaps most concerning to the perpetual GPU bulls is that DeepSeek is so efficient that a version of it can be run on your phone.<\/p>\n

Naturally, some of the worst-performing AI tokens are ones with the most exposure to GPUs. Small-cap Nodes.AI, which facilitates access to GPUs, is down nearly 20%, according to CoinGecko data<\/a>, although Aeither, which does the same (albeit at a much higher market cap) is only down 6%<\/a>, just slightly more than the CoinDesk 20 benchmark.<\/p>\n

Lessons from Crypto Gaming<\/p>\n

While DeepSeek will make for a stressful week at OpenAI, Nvidia, and other tech giants that have pivoted to AI, it’s also a more pressing lesson for crypto projects \u2013 one that might be familiar to those with crypto’s foray into gaming years ago.<\/p>\n

Despite the pools of capital available to crypto AI projects, they just haven’t been able to make something as revolutionary or interesting as what DeepSeek did.<\/p>\n

Data from CoinGecko pegs the value<\/a> of the crypto gaming sector (GameFi) at $19 billion. If the largest entries on this list, like Sandbox, GALA, or Decentraland, were entries on the top-30 largest gaming companies by marketcap<\/a> they would hold respectable positions alongside household names responsible for recognizable franchises.<\/p>\n

But despite these projects just haven’t had the same success as their traditional counterparts.<\/p>\n

\"\"<\/p>\n

Last year, blockchain gaming received lowest investment since 2020, according to data source DappRadar. Just $1.8 billion were invested<\/a> in blockchain gaming and metaverse projects, representing a 38% slide from 2023. <\/p>\n

And while the daily unique active wallets in blockchain gaming surged 421% last year, the sector’s dominance within the industry fluctuated between 26-29%, with DeFi taking the lead. Still, the tally is lower than games on Steam. <\/p>\n

Besides, some older and less popular games<\/a> on Steam, from companies with market caps a fraction of GameFi giants, have a larger following. Over the years, many crypto games have struggled to build a sustainable user base. <\/p>\n

So, for now, one might say that crypto faces challenges in catering to use cases beyond finance.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Artificial Intelligence (AI) tokens are in the red during the Asia morning trading hours, with the CoinGecko category down 9%, registering bigger losses than the CoinDesk 20 \u2013 a crypto index \u2013 which is down 5%. Crypto investors, like their traditional finance counterparts, are likely digesting the impact that DeepSeek, a new AI model, is […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-9788","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9788","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=9788"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/9788\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=9788"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=9788"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=9788"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}