We are the best supplier.

Trade News

Artificially Intelligent Crypto Traders Take Profits After 2024 Fire Rise, Pushing Token Prices Down as Much as 20 Percent

Market Pullback Hits Artificial Intelligence Crypto Sector, Rally Cools as Concerns Grow.

After a fiery rally in the artificial intelligence crypto space over the past few months, investors appear to have adopted a profit-taking strategy over the past few days. The space soared to over $10 billion in mid-February, thanks to a significant climb in Bittensor, which saw its market capitalization grow over 220% to $4 billion. By March, the sector’s market capitalization had exploded to over $25 billion.Bitcoin Miner

Headline AI coins soar in 2024 | Source: TradingView

Around March 9, several projects including Bittensor, Fetch, OriginTrail, Worldcoin, and Arkham reached new highs, pushing the market capitalization close to $30 billion.Litecoin DOGE Miner

Over the past few days, the sector’s market capitalization has fallen below $250 billion as investors took profits after a potentially overheated market spike. While Bitcoin has also fallen, its price is only 6% below its all-time high at press time, while most of the headline 10 AI crypto projects are down more than 20%.

10 Headline AI Cryptocurrencies

Interestingly, many of the AI crypto coins have not been as closely correlated to Bitcoin as others in the market recently. Bittensor and Fetch in particular seem to be going their own way, only falling when Bitcoin makes a major move. Even then, these coins usually have a delayed reaction or move in the opposite direction of Bitcoin.

Since March 6, Fetch has grown 140 percent in four days before pulling back slightly by about 20 percent. As a whole, since the sector peaked on March 9, Fetch is down 4 percent, ICP is down 11 percent, The Graph is down 12 percent, Singularity is down 13 percent and Bittensor is down 12.8 percent.

Headline AI currencies have fallen over the past few days| Source: TradingView

While the rise of AI in 2023 has brought with it a plethora of new AI-related Meme coins and hype projects, the projects currently at the top of the charts in the space are focused on the practical application of decentralized AI tools. This work has attracted the attention of Ether’s Vitalik Buterin, Erik Voorhees, and other notables in the crypto space.

As AI development continues to accelerate, decentralized AI models may become as important as decentralized finance. Blockchain and tokenization appear to be solid partners for distributed AI networks, suggesting that the recent pullback may be profit-taking rather than a loss of investor confidence in the emerging space. However, given such rapid growth, investors may also be eager to see progress in technology delivery.

Many of the headline projects have real-time primary networks that are actively under construction. The key next step is to see if the network effect can attract users to the chain to interact with the fascinating intersection of AI and blockchain. Bittensor, for example, is undoubtedly seeing demand for adoption as the cost of registering one of its 32 subnets has risen from about $200,000 this month to more than $5 million, with the price set by market forces rather than any centralized entity.



Leave a Reply