AI Token Sector Cools to Year's Lowest Levels
The weekly trading volume of AI tokens has hit its lowest since the beginning of the year, according to Kaiko Research.
AI Token Sector Cools to Year's Lowest Levels
Interest in AI tokens appears to be waning. According to Kaiko Research, trading activity in this sector is sharply declining compared to early-year benchmarks.
Aggregate data from the top 6 market-cap AI tokens - The Graph (GRT), Render (RNDR), Injective (INJ), Oasis Network (ROSE), SingularityNET (AGIX), and Fetch.ai (FET) - shows trading volumes have reached the lowest point of 2023.
Trading volumes for the 6 AI tokens compiled by Kaiko Research.
The Graph's token, a project at the forefront of AI trends from its inception, surged 122% from its low of $0.105 USD to a 2023 high of $0.232 USD on February 7. However, GRT has since retraced 53%, plummeting to $0.11 USD as of July 28.
1D chart of the GRT/BUSD pair on Binance at 10:05 AM on July 29, 2023.
Conversely, speculation suggests the launch of Worldcoin's WLD token, designed for retinal scanning, could revive other AI tokens. However, even WLD, which skyrocketed thousands of percent to an ATH of $5.29 USD on listing day, couldn't sustain this level, dropping over 30% to $2.17 USD at the time of writing. This underscores the severity of the crypto winter currently unfolding.
1h chart of the WLD/BUSD pair on Binance at 10:05 AM on July 29, 2023.
Fluctuations of some leading AI tokens. Source: CoinGecko.
Fundamentally, AI-focused crypto projects leverage artificial intelligence to enhance security, user experience, decentralization, or provide services such as image and text generation...
The trend draws inspiration from the explosion of ChatGPT, an AI-powered chatbot tool with vast datasets introduced by OpenAI in March. Since then, AI-related crypto projects have proliferated and gained widespread acceptance, driving waves of application and development in artificial intelligence/Web3 products, even briefly revitalizing the cryptocurrency market despite its short-lived nature.
