With the rise of AI, the tech market is surging.
2024 is undoubtedly a year of abundant harvests for global tech stocks. According to reports from multiple financial institutions, tech stocks have seen double-digit growth this year, with notable cases of AI concept stocks leading the surge. The most prominent example includes graphics chip giant Nvidia (NVDA), whose stock price temporarily surpassed the market value of several traditional industry leaders, driven by AI demand; diverse applications of cloud computing and data analysis companies have also benefited from capital inflow. A series of AI-driven new hardware and algorithms have led companies to urgently upgrade their large-scale computing resources, driving market vitality.
Source: Google Finance. Nvidia, driven by AI demand, saw its stock price temporarily surpass the market value of several traditional industry leaders.
Some analysts believe that favorable policies from the White House are also a driving force. After the 2024 elections, the new government is expected to adopt a proactive attitude toward AI technology, establishing dedicated units to integrate AI with cryptocurrencies, creating what is referred to as the 'Crypto and AI Czar'. This news has led investors to believe that the government intends to deeply cultivate AI and develop emerging digital finance, reigniting market enthusiasm. Concepts like 'AI collaborative agents' are beginning to ferment in the industry, making investors optimistic about future applications and potential. However, like previous tech booms, the market's expectations for 'the integration of blockchain and AI' also hide concerns about bubbles and competitive risks.
Blockchain has yet to ignite the 'Cambrian' revolution.
In contrast to the AI boom, blockchain technology has made steady progress in 2024 but has yet to witness a similar 'Cambrian explosion.' Observers point out that for blockchain to truly achieve a revolutionary leap like AI, it still needs to solve core technical bottlenecks, particularly issues related to scalability and data access.
The ideal Web3 should be able to replace mainstream applications of Web2, such as decentralized social platforms or sharing economy services, but there has not yet been a significant success story. Most decentralized applications are constrained by limitations such as transaction speed, database capacity, and user experience, preventing them from standing on equal footing with existing web services. Some attribute this to the 'three challenges of blockchain storage', namely, the difficulty of achieving scalability, high-speed random access, and integration with smart contracts. Because of this, while blockchain development appears to be full of momentum, it has yet to truly leap to a stage where 'everyone can use it, and applications are abundant.'
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The intersection of AI and crypto is deepening, and the market anticipates assimilation.
Although blockchain progress has been slow, certain trends suggest a potential for integration. Some AI research institutions and crypto companies are attempting to combine 'automated agents' (AI Agents) with blockchain, enabling smart programs to conduct high-speed transactions, manage digital wallets, or provide decentralized services on blockchain protocols. If these 'AI Agents on-chain' can be stabilized, they may bring unprecedented scalability to blockchain.
However, the integration of AI and blockchain also brings another layer of concern, as if intelligent agents possess transaction capabilities, they will inevitably face security and regulatory issues. Some experts believe that a robust firewall and contract auditing mechanisms must be established; otherwise, if automated agents are maliciously exploited, they could pose serious threats to user funds or system security. The industry currently hopes that the new government's regulatory approach can systematically coordinate operators, crypto communities, and regulatory bodies to unleash the industry's potential under manageable risks.
Currently optimistic, but vigilance is needed against volatility.
Overall, AI has successfully driven tech stocks to double growth in 2024, showing impressive performance. In contrast, while blockchain has not exploded into massive 'Cambrian' growth, it still maintains a foundation for stable development and robust advancements. Most in the industry believe that when blockchain solves scalability and storage barriers and successfully interfaces with AI technology, a new wave of technological innovation will emerge. At that time, the derivative applications brought by the fusion of Web3 and AI may fundamentally disrupt existing internet business.
However, future trends still need to consider international situations, financial turbulence, and policy directions. Although the rise of AI has sparked a frenzy for tech stocks, uncertainty in the global economy persists, and the crypto market itself also experiences cyclical fluctuations. Investors need to be optimistic about the potential deep integration of AI and blockchain while cautiously facing potential risks. Once regulations, technology, and capital opportunities converge, the 'Cambrian period' of blockchain may arrive instantaneously, leading to the formation of a completely new internet landscape.
'The AI revolution has arrived! But blockchain hasn’t even reached the Cambrian period yet. Can the integration of AI create new opportunities?' This article was first published in 'Crypto City'.