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The price of SingularityNET’s AGI token has been fluctuating as demand rises due to DeFi capabilities, cross-chain integrations, and layer-two support.
For the last 40 years, the internet has reshaped civilisation, and researchers expect that emerging media and artificial intelligence will continue to change how people communicate with data for the near future.
SingularityNET and its talented humanoid robot called Sophia are one AI-focused cryptocurrency project that has seen considerable development since the beginning of 2021.
AI developers can use the SingularityNET platform to build, upload, and monetize their services through the AI marketplace, which enables users to search, test, and buy those services using SingularityNET’s native AGI token.
Data from TradingView shows that the price of AGI rose by nearly 1,000% in 2021, increasing from a low of $0.046 on Jan. 1 to a high at $0.50 on April 6, its highest level since February 2018.
The expansion of AGI’s cross-chain partnership with Cardano, its entry into the decentralised finance arena, and the introduction of SingularityNET Layer 2 (SL2), which facilitates the development of tokens on top of the SingularityNET network, are three factors for AGI’s impressive rally in recent months.
DeFi and the SingularityDAO
After the cryptocurrency community burst in June 2020, when ventures like Uniswap and Yearn.finance started to reshape the market, DeFi has emerged as a powerful source of development.
According to the project’s website, SingularityDAO was first unveiled in November 2020 with the goal of promoting the development and financing of early- to mid-stage blockchain ventures by “leveraging AI and well-designed tokenomics to create radically more liquidity for the corresponding tokens.”
This DeFi-related operation, as well as the opportunity for AGI investors to engage in site governance, network stability, and win a yield by staking, aided the token’s rally in January and February.
Sophia, the world’s first artificially intelligent being to produce NFT-based artworks, also caught some of the nonfungible token (NFT) buzz for AGI in March, and the goods created more than $1 million in sales during her debut drop on Nifty Gateway.
AGI ecosystem expands via Cardano
The collaboration with Cardano and IOHK, the organisation backing the construction and extension of the Cardano network, has been the second source of growth for AGI and its ecosystem.
SingularityNET developers recently announced plans to build a new AGI token on the Cardano network, dubbed AGI-ADA informally. Tokens would be able to be traded back and forth with their AGI ERC-20 equivalent while retaining the same value as before.
The SingularityNET Marketplace on Cardano will utilize the protocol’s Plutus smart contract language to introduce a host of new features, including the integration of AI-DSL, “a new domain-specific language that lets AI agents on the network efficiently and formally describe their properties to each other.”
To proceed with the phase two extension and partnership with Cardano, a majority of AGI tokenholders must vote on and support the expansion, which includes a motion to create and release 1 billion new AGI-ADA tokens in monthly increments over 91 years.
The vote cycle lasted from February 3 to February 7, with the group ultimately endorsing phase two implementation.
Layer-two functionality could drive AGI price higher
The third element behind AGI development in 2021 is the launch of SingularityNET Layer 2. Its integration allows for the creation of secondary agent networks on top of the SingularityNET network.
High transaction costs and network congestion, which leads to lengthy validation periods, are two big obstacles for the Ethereum network and the tokens that run on it.
Building on SL2, networks could generate their own tokens that will demand a small charge in AGI to perform transactions at a much lower cost than Ethereum gas fees.
Several popular projects on the network are already slated to become the first SL2 projects, such as SingularityDAO and NuNet, with newer projects including Awakening Health nursing assistant robots and the SophiaDAO benevolent robotics AI network, which is also in line for integration.
These ventures, according to the SingularityNET Foundation, are simply a way to get the SL2 “off to a running start,” with the company working to “stimulate the creation of a variety of amazing third-party SL2 projects” that expand their communities and create software that helps “drive AGI token utilisation in the underlying SingularityNET network.”
SingularityNET’s emphasis on artificial intelligence and big data positions the project well for future development, especially as cross-chain networking, DeFi integration, and layer-two functionalities converge with the AGI ecosystem.