As the cryptocurrency market faces the challenges of a prolonged bear market, AI-based digital assets are failing to gain traction, despite the initial hype surrounding the technology. Recent trading data indicates that the weekly trade volume for AI-affiliated tokens remained subdued in August, reflecting the broader sentiment of the cryptocurrency market.
AI Token Trading Volume Decline:
The data analyzed the trading volume of several leading AI tokens, including SingularityNET (AGIX), Fetch.ai (FET), The Graph (GRT), Render (RNDR), and Worldcoin (WLD), along with AKT, OCEAN, and ROSE combined. At the beginning of the year, the total trading volume for AI tokens surged to almost $7 billion. However, by the end of August, it had plummeted to less than $1 billion, despite the introduction of Worldcoin in July.
Worldcoin’s Impact and Market Performance:
While the launch of Worldcoin (WLD) provided a temporary boost to AI token trading volumes, they have remained stagnant since May, coinciding with declining market sentiment. Worldcoin itself followed the familiar pattern of token launch hype and subsequent price decline, losing 67% of its value within seven weeks after its launch.
Among the AI tokens, Render is the largest by market capitalization, while RNDR has performed relatively better, gaining almost 10% over the past week. On the contrary, Fetch.ai (FET) experienced a 13% drop over the same period.
Rough Week for AI Tokens:
SingularityNET, the third-largest AI token, faced a challenging week, losing over 8% of its value and trading at $0.177 at the time of writing. The Graph (GRT) also registered a 6.5% decline in the past week and is down by a significant 97% from its peak.
Altcoin Market Conditions:
The bearish sentiment extends beyond AI-based tokens, impacting the broader altcoin market. Altcoins, including AI-related assets, have been struggling, with markets in the red and the total market capitalization falling to $1.07 trillion. These market conditions reflect a deepening crypto winter, with prices at their lowest levels in nearly two months.
The struggle of AI-based cryptocurrency tokens amid the bear market mirrors the challenges facing the broader cryptocurrency industry. As market sentiment remains subdued and prices stagnate, altcoins, including those associated with emerging technologies like AI, are facing a difficult period. The cryptocurrency market’s future performance will likely depend on various factors, including market sentiment, regulatory developments, and the broader economic landscape.