New CoinMarketCap AI tool explains token trends and price predictions

CoinMarketCap has unveiled a new tool that uses LLMs to answer top questions on each token tracked on the site.

More and more crypto firms are finding new ways to integrate AI. On Tuesday, May 20, CoinMarketCap launched an AI tool that gives users expanded information about all tokens listed on the platform. The AI agents use CoinMarketCap data to explain price movements, offer price predictions, track social sentiment, provide news, and deliver general information about a given token.

“In this first phase of CMC AI, we’re focusing on delivering insights where users need them most—directly on token pages,” said David Salamon, Chief Product Officer at CoinMarketCap. “Our AI is purpose-built for crypto, trained on our extensive market data, and designed to surface insights when users need clarity about specific cryptocurrencies.”

Salamon clarified that the goal is to enable users to get all the information they need on just one site. This helps users find the info they need more easily, without having to gather data from multiple sources.

How CoinMarketCap’s AI works

In a press release shared with crypto.news, CoinMarketCap explained how the new model functions. The tool interfaces with a large language model, such as OpenAI’s o3 reasoning model, providing it with a prompt that includes the latest price data.

Once the results are generated, all users who click on one of the questions will see the same output. The responses are not generated in real time but are updated periodically. For major tokens, the AI updates answers every 30 minutes. For smaller tokens, updates are triggered if the price moves more than 2% within one hour.

This model enables users to get instant answers without waiting for AI models to generate responses in real time. It also helps reduce API call costs for CoinMarketCap. Still, it’s important to note that LLMs do not always provide accurate responses and can be prone to hallucinations.