Yahoo Finance

There's been a recent surge in investor interest in projects that are operating at the convergence of the artificial intelligence (AI) and cryptocurrency spaces. In 2024, as excitement about AI reached new heights, numerous cryptocurrencies that branded themselves as AI-related solutions have experienced significant gains.

While the intersection of these technologies presents intriguing possibilities, the recent spike in interest may have inflated the values of many AI-branded cryptocurrencies. In typical crypto-market fashion, amid the noise, only a handful of these projects are likely to stand the test of time and hold their value.

In my view, Render (CRYPTO: RNDR) and Bittensor (CRYPTO: TAO) hold true potential for long-term growth and offer genuine utility beyond the hype.

The future of AI computing

Render is a blockchain network that aims to democratize access to the resources needed for content rendering, particularly video cards (GPUs). Founded in 2017, Render emerged from the ambitious idea of utilizing blockchain technology to revolutionize graphics rendering.

Rendering -- the process of creating highly realistic images from 3D models -- requires significant time and hardware, especially to meet the high visual standards that viewers have for today's cinema, video games, and other virtual creations. Render's blockchain connects users requiring GPU computing power with those possessing it, enabling creators to produce high-quality 3D content without the need to purchase expensive hardware.

Render's dynamic pricing system evaluates each GPU workload for rendering and efficiently distributes project tasks among available GPUs on its network. A sophisticated algorithm optimizes resource allocation, with the selected GPUs rendering the design and producing the required output. Content creators compensate GPU providers using RNDR tokens, based on the rendering task's complexity and resource usage.

Beyond its technological potential, Render has a sound token model that should bolster its value. Following a burn-and-mint system, users pay for rendering tasks with dollars and then an equivalent amount of tokens are burned. The total supply that can be created is capped at 536,870,912 tokens, and roughly 70% of those are currently in circulation. It had minimal private sales in its early years, with the vast majority of the token supply in the hands of the public, a true rarity these days.

While Render initially aimed to revolutionize graphic rendering, its innovative design offers vast potential for various AI applications as well as in the metaverse. For creators looking to leverage generative AI to create video, animations, and photos, Render's distributed network could prove to be invaluable. In addition, as the spatial web -- aka, the metaverse -- continues to evolve, there will be increasing demand for GPU resources to produce high-quality 3D renderings and photorealistic holograms.