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AI tokens are making a comeback? đź’Ş

Decoding the Crypto AI ecosystem

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Giottus Team
September 13, 2024

Decoding the Crypto AI ecosystem

13 September 2024

Wake us up when September ends!

Is the bottom mostly in? Data suggests so. A lot of bullish indicators this week after US inflation data offered hopes of an immediate interest rate cut next week.

Bitcoin has surged past some key resistances but is facing one at current levels ($58,000). About $750 million worth Bitcoin was withdrawn from exchanges on Wednesday, marking the largest outflow since May. This often leads to price increases in the short term. What is your action plan now?

Today, in our Hot Take, we look at AI tokens and what they are up to. Let's dive in.

Top-3 stories of the week:

1

Sony's L2 will Create a Japanese Yen Stablecoin with Sony Bank

Sony Bank is planning to launch a Stable Yen on Sony's upcoming L2, Soneium. The experimental process to determine its legal status will last several months. The project's goal is to make money transfers faster and cheaper.

2

UK Introduces Bill to Clarify Crypto's Legal Status

The U.K. government has introduced a bill to clarify the legal status of digital assets like crypto and NFTs. The bill will establish them as personal property, which will help with legal disputes and improve protections against fraud and scams. It introduces a new personal property category, strengthening legal clarity for digital asset ownership and protection.

3

Tether, Tron, and TRM join forces

Tether, TRON, and TRM Labs have launched the T3 Financial Crime Unit (T3 FCU), a groundbreaking private sector initiative aimed at combating crypto-related crimes on the TRON blockchain, especially involving USDT. By combining blockchain intelligence and anti-crime expertise, the unit has already assisted law enforcement in freezing over $12 million linked to various scams, marking a proactive step in safeguarding the crypto ecosystem.

The newsletter is put together by Giottus Crypto Platform. You can read all the previous issues of Cryptogram here.

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WEEKLY MACROS

  • Total crypto market cap - $2.04 trillion - UP  4.6%

  • Bitcoin price - $57,951 - UP 4.5%

  • The dollar index (DXY) - 101.09 - UP 0.2%

  • Bitcoin Dominance - 57.45% -  UP 0.2%

  • Crypto Fear and Greed Index - 32 - Market is in a Fearful State

THE HOT TAKE

Crypto AI is slowly building momentum

Artificial Intelligence (AI)-related tokens have witnessed a massive rally this week, signalling growing interest and dominance of AI-focused tokens over Bitcoin and 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.

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.

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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If you have any questions or feedback for us, write to us at [email protected]. You can check out the previous issues here.

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.