May 29, 2024
AI Token Interest Declines: Insights from Kaiko on Market Dynamics

AI Token Interest Declines: Insights from Kaiko on Market Dynamics

Even AI occasionally lacks clarity. Although there is a lot of buzz surrounding the sector, increases for crypto tokens tied to the technology have been modest.

Considering the billions of dollars being flowed into AI businesses, according to cryptocurrency analytics source Kaiko, interest in tokens related to AI has remained stable.

Kaiko claims that while interest is generally declining, the figures provide a conflicting picture.

According to Dessislava Ianeva, an analyst at Kaiko, the overall interest for five of the most popular AI tokens (FET, GRT, RNDR, OCEAN, and ROSE) fell sharply from $170 million previously in the year to a mere $60 million in August.

Kaiko claims that although there was a brief surge in interest following the contentious and highly anticipated Worldcoin launch, that interest rapidly subsided. According to the research centre, its WLD token underperformed Bitcoin and numerous other altcoins, experiencing the biggest decline of more than 50%.

According to Ianeva, a change in the world’s risk appetite is the cause of the decrease in AI tokens.

She claimed that worries about China, a nation that has aroused anxieties owing to its apparent economic downturn, have been the key factor in the decline.

Ianeva stated that “China is impacting risk sentiment,” particularly because the cryptocurrency industry lacks a story. The analyst noted that even though NVIDIA reported record-high sales, “it failed to generate enthusiasm,” which in her opinion shows that industries generally have less interest even though they have reported record-high revenue.

Some ventures, such as (FET) and Ocean Protocol, which saw a nearly 90% increase in open interest the previous month, did acquire traction, according to Kaiko.

Although public interest has recently plummeted, weekly transaction volumes for tokens related to artificial intelligence (AI) significantly climbed in August. Kaiko stated that they increased to $870 million last month after falling to an annual low of $570 million in late July.

These somewhat upbeat results reflect “increased capital competition within the market,” according to Ianeva. She describes the macroeconomic environment as “challenging,” and claims that only “the most innovative projects will attract capital.” Ianeva is nonetheless upbeat about the immediate future.

She continued by saying that “October is historically one of the best for crypto,” and that because markets are forward-looking, traders will “start positioning for the Bitcoin halving and spot Bitcoin ETFs.”

She came to the following conclusion on the macro environment: “It could also be more supportive for risk assets as the Fed’s peak rate has passed.”

Image: Freepik

Related posts

DeepMind CEO: Google Committing Over $100B to AGI Development

Cheryl  Lee

OpenAI Unleashes ChatGPT Team with 32K Context Window and Custom GPTs

Kevin Wilson

Giza Raises $3 Million for AI Integration on Starknet

Anna Garcia

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More

Please enter CoinGecko Free Api Key to get this plugin works.