Price breakouts have been rather short-lived in the crypto market lately, the most recent case being Bitcoin’s short-lived rally to $65,000 on August 24.
According to data from Glassnode, traders have become more risk-averse and wary of using leverage to chase larger gains in the crypto market. In The Week Onchain Newsletter on August 27, analysts explained that the “phenomenon” or reduced demand for speculation and leverage is reflected by “a large number of Token currently showing neutral funding rates,” suggesting that “spot markets are likely to take control in the near future.”
Although Bitcoin has lost much of its gains to trade below $59,000 on August 27, Fetch.ai 's FET Token has been a standout performer over the past seven days. Since August 5 — the day BTC dropped to $49,500 — Artificial Superintelligence Alliance, which trades as FET, has gained 80%.
Let's take a quick XEM at some of the factors that drive FET performance.
Altcoins benefit from the AI story
Artificial intelligence-related Token have been the best performers in 2024, thanks to the emergence of various AI tools and the historical performance of Nvidia stock. Nvidia's positive stock performance was followed by strong rallies in AI Token , including FET. The Token also rose as Nvidia posted a positive earnings report, with the chipmaker expected to report quarterly results on August 28.
FET's value has increased by over 500% in the past 12 months and 90% year-to-date. Agents (or programmable, automated digital avatars) are one of Fetch.ai's primary use cases. Through the AgentVerse platform, automated agents can be tasked with finding, connecting, and transacting on marketplaces on behalf of users and businesses.
AgentVerse is essentially a Software as a Service (SaaS) platform. Ideally, the Fetch.ai team hopes that their AI agents will be used to redefine monetization strategies and also fulfill user requests like optimizing hotel and flight bookings, along with managing electric vehicle charging infrastructure.
On June 13, Fetch.ai, Ocean Protocol , and SingularityNET merged to form the Artificial Superintelligence Alliance (ASI) with the goal of combining the AI features of each protocol to create a vertically integrated technology stack. Token from OCEAN and AGIX are in the process of being converted to FET. When news of the alliance broke, the price of FET surged to an All-Time-High of $3.48.
In the months following the merger, FET prices fell along with the broader altcoin market, bottoming Dip at $0.70 on August 5. This sharp decline brought FET prices back to December 2023 levels, a figure that surprised many.
Traditionally, the cryptocurrency market has been dominated by thematic hype cycles, and while this may be an unpopular view, the AI sector can become saturated with many identical solutions that do not necessarily fit consumer needs or are not suitable for a certain type of product in the market.
In the short term, AI Token investors will likely be closely watching Nvidia’s earnings report, scheduled to be released on Wednesday, August 28.
FOLLOW US ON FACEBOOK | TELEGRAM | TWITTER
Disclaimer: All content on this website is for informational purposes only and does not constitute investment advice. Readers should conduct their own research before making any investment decisions. We are not responsible, directly or indirectly, for any damages or losses arising in connection with the use of or reliance on any content you read on this website.
