DeFi meets AI: Can this synergy be the new focus of tech acquisitions?
The crypto industry has faced significant challenges over the past few years, dealing with issues such as failed exchanges, regulation, collapsing projects and depegged stablecoins. These hurdles have contributed to an atmosphere of uncertainty and skepticism within the industry. However, the obstacles experienced within the space have now paved the way for new entrants, and with them, innovative solutions that continue to drive the evolution of decentralized finance (DeFi).
At the forefront of these efforts is a growing desire to integrate artificial intelligence (AI) into financial ecosystems, which represents the next step for crypto. This central focus on AI aims to strengthen resilience, mitigate risk, and build a sustainable and trusted foundation for the future of the industry.
One of DeFi’s use cases for AI relates to trading and portfolio management. AI tools can improve forecasting capabilities by introducing more advanced and accurate predictive models for cryptocurrency price movements. AI-based trading tools can analyze vast amounts of price data, identify chart patterns, and take bullish or bearish positions using technical analysis indicators. Not only are such tools more accurate and powerful than humans, but they are also completely unaffected by the psychological aspect of being able to enter and exit positions according to strategy.
AI can perform trades based on predetermined conditions and learned patterns, enabling trades to occur 24/7 with high efficiency. This could open up more opportunities for traders in the volatile cryptocurrency markets.
One example of an AI-powered DeFi trading platform is Athena GPT, a product of NFA Labs (NFAi). Athena is part of a wider DeFi ecosystem known as Not Financial
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