What to know:
- Crypto AI tokens like NEAR and Fetch.AI are failing to replicate their 2024 performance during Nvidia’s annual conference.
- The sector is experiencing a downswing as speculative traders shift attention to the more volatile AI agent tokens.
- Google search trends show that global searches for NEAR and Fetch.AI are down by 47% and 84% respectively since last March.
As a researcher examining the realm of artificial intelligence (AI), I’ve noticed that the anticipation surrounding AI crypto tokens, aimed at revolutionizing this field by 2024, seems to be falling short of its mark. This observation comes despite Nvidia’s (NVDA) latest conference generating a wave of optimism among traditional AI stock markets.
In the run-up to Nvidia’s annual conference last March, the value of NEAR tokens nearly doubled. This surge was echoed throughout the broader AI-focused cryptocurrency market. Simultaneously, Fetch.AI (FET), The Graph (GRT), and SingularityNET (AGIX) all experienced notable upward rallies, mirroring the conference’s impact.
This year, AI-related tokens have revealed their vulnerability, as evidenced by NEAR’s drop of over 8% within the past day and FET plummeting close to 9%. On the other hand, NVDA started off the year priced at $133, surged by 15% to reach $153 on Monday as the conference commenced.
One explanation for why AI tokens are no longer garnering the same level of interest is the advent of AI agent tokens. These new tokens resemble meme coins in certain aspects, such as their volatile behavior and fervent fan bases. In contrast to traditional AI tokens, investors find these newer tokens more appealing due to their potential for substantial returns, often exceeding triple or even quadruple-digit growth. However, it’s important to note that, similar to meme coins, AI agent tokens carry a higher risk of significant losses as well.
An additional factor could be waning enthusiasm, as indicated by the significant decrease in searches for “NEAR token” and “Fetch.ai”. Since March, these searches have dropped by approximately 47% and 84% respectively, according to Google search trends.
It’s hardly shocking that a downfall occurred, given how unpredictable and swiftly punitive the cryptocurrency market can be towards sectors experiencing rapid growth due to speculation. Last year’s surge was no exception; investors jumped into AI-related tokens, betting on them becoming the main storyline of the bull crypto market. However, it turned out to be bitcoin that took center stage with tens of billions of dollars flowing into ETFs and a surge in optimism surrounding Donald Trump’s presidential win.
Despite AI tokens being at an early stage of development, they haven’t yet gained widespread use due to most projects still under construction. On the other hand, Nvidia unveiled a compact supercomputer named Digits for $3,000, slated for sale in May.
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2025-01-07 21:39