Massive AI Token Merger: Is This the Future of Blockchain and DeFi?

A major development is shaking up the blockchain space. SingularityDAO, Cogito Finance, and SelfKey have revealed plans for a strategic token merger. Their goal is to create Singularity Finance, an EVM Layer-2 solution that integrates artificial intelligence (AI) with tokenized real-world assets (RWAs) in decentralized finance (DeFi). The unified token, SFI, will act as the economic backbone of this new ecosystem, designed to drive Web3 innovation.

The Merger and Its Impact

This merger will convert the existing tokens—SDAO, CGV, and KEY—into SFI, the unified governance and utility token. The conversion rates are set at 1:80.353 for SDAO, 1:10.890 for CGV, and 1:1 for KEY. Initially, SFI will launch on both Ethereum and BNB Smart Chain, with a mainnet release scheduled for 2025. The aim is to address challenges in integrating AI with tokenized RWAs, opening new opportunities in the Web3 landscape.

Mario Casiraghi, co-founder of SingularityDAO, underscored the importance of this alliance. According to him, the intersection of AI and DeFi is where much of the current Web3 innovation is happening. Integrating AI assets like GPUs into DeFi applications could revolutionize both the AI and blockchain industries.

AI Tokens on the Rise, Outpacing Meme Coins

While meme coins remain popular, AI tokens are gaining momentum in October. According to CoinGecko, traffic to AI projects accounts for 9.66% of total platform visits—about 2 million views per month. Although interest in meme coins is still higher, data from Artemis shows AI tokens outperformed other sectors in recent weeks. Over the past 30 days, AI-related tokens surged by 53.7%, compared to other categories.

Additionally, CoinMarketCap data shows that the market capitalization of AI tokens has more than doubled, rising from $18 billion in August to over $37 billion in October. Daily trading volumes have also exceeded $2 billion throughout October, signaling strong investor interest.

Venture Capital’s Focus on AI

Venture capital (VC) firms are showing a strong preference for AI projects over meme coins. According to Galaxy's recent report, VCs are skeptical of meme coins' long-term value and are instead backing sectors with more substantial potential. AI has emerged as one of the top five sectors for VC investments in the last quarter, with funding primarily going to Seed and Early Stage projects.

This trend is further emphasized by VanEck Ventures, a new fund launched by VanEck, a New York-based investment firm. The fund highlights AI, stablecoins, and blockspace commoditization as key investment areas, showing a clear shift toward future-facing technologies in blockchain.

A New Era for AI and Blockchain

With the formation of Singularity Finance and the growing interest in AI tokens, the crypto landscape is poised for transformation. These developments are not only pushing the boundaries of DeFi but also redefining the role of AI in the blockchain ecosystem. Investors and industry participants alike will be closely watching these projects as they create new possibilities in both AI and finance.

Disclaimer: This article is intended for informational purposes only and should not be construed as legal, tax, investment, financial, or any other form of advice.

Source: ICO Gem Hunters