The market capitalization of AI-related projects is showing a resurgence in October. While meme coins remain popular, data suggests that AI tokens could attract significant investment in the final months of the year.

It’s not just individual investors but also investment funds showing interest in early-stage AI projects.

Investors Turn Attention to AI Tokens Right After Meme Coins

According to a recent report from CoinGecko, traffic to AI projects on the platform accounts for 9.66% of the total. With over 20 million monthly visits, this translates to roughly 2 million views for AI projects each month.

Despite this, interest in AI tokens still trails behind meme coins and Solana meme coins. However, October data from Artemis indicates that AI tokens have delivered superior price performance over the past 30 days.

The AI coins portfolio tracked by Artemis has surged by 53.7%, three times the average increase across other sectors.

CoinMarketCap data shows AI coins’ market capitalization has more than doubled, rising from $18 billion in August to over $37 billion in October.

Additionally, daily trading volumes for AI coins have consistently remained above $2 billion throughout October, double the average of the previous two months. These figures reflect a growing demand among investors for AI tokens.

Read more: How To Invest in Artificial Intelligence (AI) Cryptocurrencies?

AI is Among the Top 5 Sectors of Interest for VCs

One key difference between AI coins and Meme coins is the level of interest from venture capital (VC) firms. According to a recent report from Galaxy, VCs are skeptical about the long-term value of meme coins, instead opting for sectors they believe hold greater potential.

The data shows AI as one of the top five sectors VCs focused on over the last quarter. Most investments in AI projects are at the Seed Round and Early Stage, signaling confidence in the sector’s long-term prospects.

Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024

Recently, VanEck, a New York-based investment management firm, launched VanEck Ventures, which focuses on cryptocurrencies and AI.

“Three inflection points core to our investment thesis are starting to reshape the foundation of the internet: stablecoins emerging as an open-source banking layer, the commoditization of blockspace, and AI breakthroughs.” Wyatt Lonergan, General Partner at VanEck Ventures, said.

Massachusetts Senator Elizabeth Warren appeared to have softened her previously hardline stance against the cryptocurrency industry. During a recent debate with XRP advocate John Deaton, Warren signaled a more measured approach to digital assets.

The shift comes as cryptocurrency increasingly emerges as a political priority in the US election campaign.

Elizabeth Warren Signals Softer Crypto Approach

The Senator’s debate with rival aspirant John Deaton on Tuesday sparked speculation on whether Elizabeth Warren is rethinking her approach to the growing industry. The current Massachusetts Senator, who has often criticized cryptocurrencies for their potential to enable illicit activities and evade regulation, took a more balanced position this time.

“I’m all for having a crypto system if people want to buy and sell crypto. All I want is for them to follow the same rules as everyone else,” Warren expressed.

This statement reflects a significant departure from her prior rhetoric, which has often focused on the risks and downsides of crypto. While Warren emphasized the need for regulation and consumer protections, her openness to the idea of a functioning crypto market caught many by surprise.

Read more: Crypto Regulation: What Are the Benefits and Drawbacks?

The remarks came as Warren clashed with John Deaton, a prominent attorney and advocate for the crypto industry. Deaton highlighted Warren’s past efforts to regulate or outright ban cryptocurrencies and called her out for previous attempts to stifle the industry.

“It’s hardly surprising that industry players would back a pro-crypto candidate when you’ve tried to ban them,” Deaton said.

Warren, however, quickly responded by accusing Deaton of having financial ties to the crypto industry. She claimed that “90% of Deaton’s campaign” was funded by the crypto sector, suggesting this could compromise his integrity if elected.

“If John Deaton goes to Washington, his crypto buddies are going to want a return on their investment,” said Warren.

Taken together, the debate displays the deep ideological divide between the Republican and Democrat candidates. Specifically, while Warren focused on enforcing stricter rules and transparency, Deaton emphasized the potential benefits of supporting crypto innovation.

Deaton’s Criticism and Political Jabs as Warren’s Position on Crypto Evolves

Deaton did not hold back in his criticism of Warren’s stance, both in the debate and in his wider advocacy efforts. He pointedly said that Senator Warren should attack inflation the way she attacks crypto. He hinted that her efforts to curtail the industry have distracted from other pressing economic issues.

In a light-hearted but sharp comment, Deaton also mentioned his role in helping Chris Larsen, co-founder of Ripple, donate XRP to Vice President Kamala Harris, Warren’s candidate of choice.

“Madam Vice President, if you’re watching, you’re welcome,” Deaton quipped.

This was an allusion to the irony of supporting a candidate with links to Warren despite her anti-crypto history. It remains to be seen whether this marks a full pivot for Warren or simply a strategic recalibration. Galaxy’s head of Research, Alex Thorn, said Warren showed consistency in her remarks.

“No warren’s being consistent. May seem reasonable when she says same rules as the banks, but she means applying BSA compliance to non-custodial entities like wallets, software devs, smart contracts, miners, validators, which is effectively a ban on blockchain networks themselves,” Thorn commented.

Others like Caitlin Long, Custodia Bank founder, said Warren is okay with big banks jumping the Federal Reserve’s line. Nevertheless, her position seems to have evolved. Warren’s statement, “I’m all for having a crypto system,” as long as it adheres to banking rules and consumer protections, suggests she is not abandoning her regulatory goals.

Instead, she may recognize cryptocurrency’s growing importance in the global economy and adjust her approach to focus more on accountability rather than outright opposition.

Read more: How Can Blockchain Be Used for Voting in 2024?

Deaton’s closing remarks reflected this shift as well, noting that Warren was “not very anti-crypto tonight.” The debate has raised new questions about the future of cryptocurrency regulation in the US as the November elections approach.