Even AI Can’t Make Up Its Mind: Crypto Tokens Pegged to Technology Aren’t Seeing Big Gains
Even AI can’t make up its mind sometimes. The industry is generated a ton of hype, but crypto tokens pegged to the technology have aren’t seeing big gains.
Interest in AI-Affiliated Tokens Remains Flat
- Crypto data provider Kaiko writes that interest for AI-affiliated tokens has remained flat despite the billions of dollars that have poured into AI startups.
- Overall, writes Kaiko, interest is down, although at second glance, the numbers tell a mixed story.
Decline in AI Tokens
Kaiko analyst Dessislava Ianeva, total interest for five of the top AI tokens (referring to FET, GRT, RNDR, OCEAN, and ROSE) plummeted from $170 million earlier in the year to just $60 million in August.
China’s Impact on Risk Sentiment
The decline among AI tokens, says Ianeva, is due to a shift in global risk appetite. She said the drop has been driven mainly by concerns relating to China, a country that has sparked fears due to its alleged economic slowdown.
Some Projects Gain Traction
Kaiko reported that some projects did gain traction, notably Fetch.ai (FET) and Ocean Protocol, the former posting a near 90% surge in open interest during the previous month.
Increase in Trade Volumes
While open interest has taken a nosedive as of late, weekly trade volumes for AI related tokens increased considerably during August. Kaiko revealed that after plunging to yearly lows of $570 million in late July, these jumped to $870 million last month.
Optimism for the Future
Ianeva is optimistic about the near term future, nonetheless. She told Decrypt that “October is historically one of the best for crypto,” and with markets being forward looking, traders will “start positioning for the Bitcoin halving and spot Bitcoin ETFs.”
As for the macro environment, she concluded that “it could also be more supportive for risk assets as the Fed’s peak rate has passed.”
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