Tructured artificial intelligence Deepseek from the Chinese company that embraces its face It has become the main event for this week. The news about reasonable and useful technologies seems to be positive. However, the DeepSeek R1 model not only undermined the positions of the leading American companies, including Openai is the leader in Chatgpt, but also caused the collapse of technology shares. However, the most interesting thing is how and why Deepseek has negatively affected the cryptocurrency market and what will happen after that?
The consequences of the release of Debsik
On January 27, 2025, Deepseek released the R1 model, which impressed the market with the performance of Openai O1-MINI, but it requires a much lower cost. As a result, the Nasdaq compound has lost more than one trillion dollars in the capital. Giants such as NVIDIA, Google and Microsoft have suffered from a significant decrease. The reason for this reaction is the fear of the potential loss of American domination in the field of artificial intelligence (AI). Investors began to question the justification of billions of dollars in artificial intelligence investments, and Deepseek showed that a similar result can be achieved at a much lower cost.
Amnesty International Development Companies train their models on giant computers using up to 16,000 integrated circuits, while Deepseek uses only 2000 chips of the H800 series in NVIDIA.
The graphics processing units alone are very important to perform the intense arithmetic tasks required in industries such as cryptocurrency mining and artificial intelligence. For example, NVIDIA GPUs uses to solve mathematics problems that achieve the health of transactions on Blockchain and receive rewards to do so (work proof mechanism or POW).
Interestingly, Dibsic’s entry into the market has reduced the instant uranium price, which is a key to developing intense energy intelligence. On January 28, the price decreased by $ 3.90 per pound of uranium oxide (U3O8) to $ 67.30 per pound, which means a weekly decrease of $ 6.55 per pound.
How Dibsic affected the encryption market?
The news of the R1 launch had an immediate impact on the encryption market, especially on companies specialized in cryptocurrency mining. The largest players in the cryptocurrency, such as riots (RIOT), COFR, CORZ, and Teawulf (WULF), have witnessed a sharp decrease in stock prices by 20-30 %.
The reason is the fear that Dibsic will reduce dependence on expensive graphics processing units. The R1 model training (as the Chinese says in any case) costs only $ 5.6 million, while the GPT5 training last year was close to $ 1.2 billion!
In addition, companies that have begun to diversify their businesses through hosted artificial intelligence solutions, such as HUT 8 and Iris Energy, felt negative effects. The R1 launch created competition in this sector, as the Deepseek artificial intelligence model showed mathematical efficiency even without the most advanced processors. This increased pressure on companies that focus on infrastructure services in the artificial intelligence space.
The general decrease in mining shares may also have a negative impact on the value of bitcoin, as investors start anxiety about the financial stability of the main players in the sector. BTC decreased for a short period of less than $ 100,000.
AI-Orie’s curwful encryption projects also received a heavy blow. The symbols that depend on high-performance graphics processing units (GPUS), such as the width (width), graph (GRT), and Fetch.ai (Fet) have witnessed a decrease of 11-15 %.
- In short, Render is a decentralized display platform that uses video cards to process graphics and visualization.
- The GRT is a protocol for indexing and inquiring about data in Blockchains that actively use graphics processing units to process and analyze large amounts of information quickly.
- The Fetch.ai (Fet) AI and Blockchain project is merged to create Independent artificial intelligence factorsWhich performs complex accounts and data analysis.
In general, all symbols or projects related to AI (at least by name) were affected. during On January 27 alone, 330,767 traders were ranked in stock exchanges, up to the total amount to 941.63 million dollars.
Very sick or is the competition – always good?
Despite the negative impact in the short term, there are positive aspects of the encryption market. The other is to reduce the cost of launching Blockchain solutions with artificial intelligence. The open source Deepseek code allows its inclusion in current encryption projects, which reduces the cost of creating and maintaining decentralized AI applications.
In addition, by reducing computing cost, Deepseek opens opportunities to expand the scope of artificial intelligence in Web3 projects, which can stimulate the development of the encryption economy in general.
After the initial panic, the encryption market began to stability, and some symbols of artificial intelligence already show signs of recovery.
Deepseek has become an incentive for change in the world of technology. It will determine if its effect is very negative. However, in the long run, the key to the most efficient artificial intelligence solutions can be affordable in the coded currency area, Secure Examination of encryption. In his opinion, Deepseek shock may turn to the “bi -up” of the encryption market, especially for the AI sector.
Despite the short -term chaos, AGIE argues that the open nature of Deepseek and the low costs of launching Blockchain applications on behalf have the ability to make encrypted currency projects more sustainable and ultimately profitable.
For example, frameworks such as AI16Z, which have already integrated Deepseek technology, shows how these developments can reduce the financial barriers that prevent the spread of artificial intelligence solutions in the ecosystem for encryption.
Participant founder of Eliza Labs by Ai16z Shaw books On the X platform, the most powerful models are always good for artificial intelligence agents.
This is already clear in the price: AI16Z codes are currently $ 0.6104 (+8.05 %), the market value increased to $ 671.47 million (+8.06 %), and the daily trading volume has increased to 150.74 million dollars (+28.23 %).
