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“Artificial intelligence can increase the value of Ethereum”

Important facts:
  • According to the analysis, artificial intelligence will drive the development of web3.

  • Thanks to artificial intelligence, it will be possible to improve the development of dApps on Ethereum.

Stony Chambers, a digital asset research service, explained how artificial intelligence (AI) could be a powerful catalyst for the growth of Ethereum as a decentralized network and its currency Ether (ETH) as an investment.

In a special analysis on this subject, Stony Chambers detailed Unlike Bitcoin, which was created as a currency, Ethereum is designed as a versatile platform hosting decentralized applications (dApps). With this in mind, the report suggests that AI will play a fundamental role in its growth and, consequently, the rise in ETH price.

As the first argument of this work, he argues that AI improves the efficiency of developers and the security of written code. Therefore, provides for the further development of dApps on Ethereum with artificial intelligence.

He explains that web3 has a history of vulnerabilities and AI can be used to improve security by identifying patterns that can lead to failure. “This not only speeds up the development process, but also ensures that dApps are more secure and robust,” he says.

As such, an increase in the number of high-quality dApps being released is expected, and given Ethereum’s dominance in this space, it will be the biggest beneficiary. He claims that many of these protocols will be built on top of such a network, which “will create tremendous value for ETH”.

Second, it states that AI’s ability to generate unique information from the data it collects can be applied to the vast amounts of data provided by blockchains. In that sense, it projects this into the future Many other use cases for blockchain data could emerge. which favors commercial activity.

Because with this technology, the behavior of certain smart contracts can be understood. By analyzing the frequency, nature, and outcomes of interactions with a given contract, AI can provide insights into its usefulness, potential risks, and even spot anomalies. “This is invaluable for traders and strategists in the DeFi space” as they can access processed information to close their trades.

Additionally, the analytics firm notes that “AI will bring much more commercial activity by integrating automated trading operations.” In his opinion, “Their ability to analyze big data and make informed decisions leads to more efficient and potentially more profitable business strategies.”

Based on this, he posits that AI would “significantly improve the speculation experience” for investors, which could attract more users and capital, further increasing Ethereum’s importance and contributing to a surge in ETH price.

As a third point, he states that the revenue models of AI providers tend to be pay-per-use models. This requires the development of interoperable systems that enable a fast, programmable, and auditable settlement purpose, and “Ethereum is the natural candidate to fill this need,” he says.

As AI systems evolve and strive for greater interoperability, The need for a reliable, fast and transparent settlement layer is becoming increasingly important. Therefore, he argues, Ethereum, with its smart contracts and on-chain settlement capabilities, is poised to play a crucial role in this next frontier of AI development.

He also mentions that cryptocurrencies are heavily influenced by narratives and that news about AI companies actively promoting the use of Ethereum will have a positive impact on ETH price.

Stony Chambers summarizes this by considering the three factors described “AI should have a positive impact on the ETH price” as well as on the network.

“ETH has an explosive advantage as AI begins to catalyze Web3 and blockchain development, and even more so as Ethereum is used as a tool for AI interoperability.”

Stony Chambers, Research Service.

Ethereum’s growth would be accelerated by AI

Stony Chambers emphasizes that Ethereum remains at the forefront of an evolving Web3 and decentralized finance (DeFi) landscape, serving as the base layer for most dapps. He clarifies that this industry’s growth began before the explosion in popularity of AI.

However, he concedes that for now The market doesn’t seem to appreciate the impact of AI on Ethereum because ETH’s performance has been correlated with BTC’s this year.

ETH is up 54% this year, BTC is up 78%. Spring: TradingView.

In his view, the dominant narrative of the ecosystem comes from bitcoin, and more broadly, the rest of cryptocurrencies have also emerged as a legitimate alternative asset class and are gaining institutional support. But believe that Once AI development of Ethereum increases, it will become a catalyst for a dedicated market for the price of ETH.

“Ethereum’s growth trend should be supported or accelerated by AI,” he says. He concludes that this is because “artificial intelligence will drive the development of Web3”.

In doing so, Stony Chambers joined the wave of ecosystem participants who have voiced their optimistic outlook for ETH this year based on growth forecasts for the Ethereum network. As CriptoNoticias reports, among them is the Brazilian digital asset manager Hashdex.

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