Artificial Intelligence (AI)-related tokens have witnessed a massive rally this week, signalling growing interest and dominance of AI-focused tokens over Bitcoin and other top altcoins. Leading the charge is Artificial Superintelligence Alliance (FET) with a 26% rally this week.
Internet Computer (ICP) and Bittensor (TAO) have also seen impressive momentum, each gaining over 15%, reflecting bullish sentiment in these tokens.
In today’s issue, we analyse the catalysts behind the rally and what the future holds in the immediate term.
The Nvidia connection
The movements of the Nvidia stock and AI-related tokens have been quite similar lately. Earlier this month (on Sep. 4), Nvidia stocks witnessed a 10% drop due to a reported antitrust subpoena from the US Department of Justice. This, in turn, led AI-related coins to suffer double digit losses.
However, the stock witnessed a sharp surge this week; this has positively impacted the price movements for the AI tokens.
Source: Trading View
Apple Intelligence is here
Earlier this week, Apple introduced its new "AI" – and no, not artificial intelligence, but Apple intelligence. This new AI aims to bring advanced smarts to your smartphone, the Apple way.
Source: Google
Blockworks Report
Blockworks released its research on the different crypto sectors year-to-date, with Crypto AI being one of the top-performing sectors. At its peak in March, the sector’s performance soared over 250%, even as most projects are still in their early stages, testing waters and rolling out features step-by-step.
Source: https://x.com/blockworksres/status/1825940160422535218
Coinbase announces first AI-to-AI transaction
Coinbase CEO Brian Armstrong has revealed on X that two AI agents operating on the Base blockchain have now transacted with one another.
Source: https://x.com/brian_armstrong/status/1829623778726592804
FET-AGIX-OCEAN mega merger
In March 2024, Fetch.ai announced its plans to merge with SingularityNET and Ocean Protocol to create what the entities are calling the “Superintelligence Alliance”. According to the Alliance, the idea is to end the dominance of Big Tech like Google, Meta, and OpenAI, by providing a decentralized alternative to how AI is developed, used, and monetized. We are possibly seeing first signs of investor interest in FET token this week.
Key takeaway
AI, along with gaming, is possibly the biggest narrative for crypto this bull run. Globally, AI products have taken off well with brands like Google, Microsoft, and Apple taking huge strides in this space. If this storm builds up in crypto over the next year or so, we anticipate AI to be a top performing narrative that will do better than most altcoins. We suggest some exposure in this sector for all diversified crypto portfolios.
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Disclaimer: Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Please do your own research before investing and seek independent legal/financial advice if you are unsure about the investments.
