AI Crypto Projects Witness Downtick in Trading Volume After Surge of Buzz Earlier This Year: Market Data Firm
A market data firm says that artificial intelligence (AI)-focused crypto projects are experiencing a decline in trading volume after buzzing earlier this year.
According to crypto intelligence firm Kaiko, AI-related tokens such as Oasis Network (ROSE), Render (RNDR), and The Graph (GRT), have recently lost their momentum.
“AI-related tokens have been losing momentum, hitting lowest weekly trade volume since January.”
In January, rumors were swirling that tech giant Microsoft would be investing a staggering $10 billion into Open AI, a US-based AI research laboratory that created ChatGPT, a viral AI chatbot.
At the time, AI-focused crypto projects, including SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN), greatly benefited from the buzz surrounding the rumor, rising 136%, 91%, and 37%, respectively.
According to Riyad Carey, a research analyst at Kaiko, Worldcoin (WLD), a crypto project co-founded by OpenAI founder Sam Altman, had a “unique” launch earlier this week that is convincing people to use its eye-scanning technology.
“Worldcoin’s WLD launch is one of the more unique I can remember: Nearly 90% of circulating supply was loaned to market makers. Only 1% of total supply was released. Listing was (as expected) very efficient, though there was some suspected wash trading…
The launch suggests that the team felt it had to assign an appealing dollar value to their token. Convincing people to scan their eyes for 25 units of a token that doesn’t yet exist can be challenging; if the token’s price is, say, $0.10, it’s even more challenging.
The 25 WLD tokens are currently worth a little more than $50 and will likely stay in that range for the next three months. So far, this seems to be enticing people to sign up and scan.”
Worldcoin is currently under investigation in both the UK and France over privacy concerns.
Kaiko then shifts its focus to XRP, the digital asset used to operate Ripple Labs’ payments system, which recently had a landmark ruling in its favor against the U.S. Securities and Exchange Commission (SEC).
According to the data gathering platform, the token’s futures volume-to-open interest ratio signals sustained speculative interest for the digital asset.
“XRP perpetual futures volume-to-open interest ratio remains above average on most exchanges, signaling sustained speculative interest.”
Moving on to the top two crypto assets by market cap, Bitcoin (BTC), and Ethereum (ETH), Kaiko finds that they have seen a massive decline in volatility during the last three months.
“Both BTC and ETH have seen a decline in 90-day realized volatility this year. Currently, their volatility levels are hovering around two-year lows.”
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Author: Mehron Rokhy
