Investors are well aware of the explosive growth throughout the cryptocurrency space at the moment. A lot of that has to do with multiple positive catalysts coming together for leading assets in the space, namely Bitcoin (BTC-USD). Yet, AI cryptos remain relatively less discussed.

Events like the upcoming BTC halving and the Ethereum (ETH-USD) ETFs’ potential should push the crypto market even higher. Investors should also consider that artificial intelligence has the potential to move the crypto market as well. No other factor has moved the stock market as much as AI over the past year. 

Therefore, it is reasonable to suggest that artificial intelligence confers outsized potential to the cryptocurrency space. So, let’s look at three cryptocurrencies that are leveraging the power of artificial intelligence and machine learning.

Bittensor (TAO-USD)

Bittensor (TAO-USD) combines the power of a blockchain and machine learning in one network. At its heart, Bittensor is really about connecting machine learning models. All of those models come together to create a machine learning based network protocol.

It all works together in a way that will be very familiar to those who understand the underlying premise of Bitcoin. The TAO token is rewarded to miners who lend their computational power to successful machine learning tasks. That proof of method is very similar to the way that Bitcoin is rewarded. 

The reason to believe that Bittensor has outsized return potential is simply that it is already exhibiting such potential. The value of a token has increased from $80 to $640 over the past 12 months.

Recent articles suggest that TAO could rise above $750 in the near term on the strength of Bitcoin. TAO will remain one of the more prominent AI cryptos in the foreseeable future. 

Fetch (FET-USD)

Fetch.ai (FET-USD) is another project building a decentralized machine learning based crypto network. 

It is a permissionless network, meaning that you and I can access it at will. The network allows users to access secure data sets and leverage its autonomous AI to execute tasks. 

One interesting aspect of Fetch.ai is that it allows users to create AI-enabled agents. Those agents can be programmed with logic that will allow them to execute any number of tasks. The bigger idea to remember is that Fetch.ai is building an open decentralized machine learning network. 

The hype around artificial intelligence stocks is beginning to transfer over to the cryptocurrency market. That’s why identifying early stage, inexpensive assets like this may make so much sense at the moment: it exposes investors to what could be incredible upside. 

To be completely transparent, yes, a lot could go wrong with individual projects. Furthermore, Fetch.ai is rich in technical jargon and may or may not create anything substantial. There are clearly risks, but that is the nature of investing in AI cryptos at this point. 

Arkham (ARKM-USD)

Arkham (ARKM-USD) is an AI crypto that has only existed since August of 2023. In its short life the token has increased in value by nearly 300% almost exclusively since mid-February.

It’s an interesting project — and frankly one that I don’t particularly like. However, I can see the deep inherent value in its purpose. The purpose is to deanonymize the blockchain and data on chain. There are lots of entities and enterprises that would love to be able to deanonymize various blockchains. Whether you like the idea or not certainly has utility. 

The point is that Arkham is using AI in order to further its goal of deanonymizing blockchains. Many pundits remain highly concerned that cryptocurrency is the domain of fraudsters and criminals. Arkham promises to track stolen funds, identify fraudsters and other people undertaking illicit activity through the blockchain, and so forth.

It will be interesting to see how potential users continue to respond to Arkham’s emergence. It was only a matter of time before projects emerged with the explicit goal of deanonymizing the blockchain. 

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.