The post AI Altcoins Rally: Just a Hype or Sustainable? appeared on BitcoinEthereumNews.com.
AI-themed cryptocurrencies and meme coins surpassed Bitcoin in the previous week, despite Bitcoin’s record-breaking high of $70,184 on March 8. AI altcoins and big data saw a 43.4% increase in trading volume and an 11.6% rise in market capitalization, accounting for 1.6% of the $2.6 trillion crypto market dominated by Bitcoin at 51.72%. The AI altcoins rallying indicate growing investor confidence, but questions remain about their long-term sustainability and utility. Market Dynamics In a recent report from Coinbase, a leading cryptocurrency exchange, the value proposition of AI-related tokens has come under scrutiny. Despite the ongoing exploration of artificial intelligence (AI) in various industries, the report suggests that the current excitement surrounding AI tokens may not align with their long-term value. Currently, AI tokens collectively hold a market capitalization of over $51 billion, serving various AI-based projects and applications. NEAR Protocol, Render, The Graph, Fetch.ai, and SingularityNET have all experienced substantial increases in their prices. NEAR Protocol price stands out with a notable surge of 53.12%, followed closely by Render at 49.67%. The Graph showed a respectable increase of 26.89%, while Fetch.ai exhibited the highest surge among the listed altcoins, boasting an impressive 84.14% rise. SingularityNET also saw a significant uptrend, with a seven-day percentage change of 53.44%. Despite their recent price surges, Coinbase cautions that a lack of clear adoption forecasting and metrics may fuel speculative trading, which could be unsustainable in the long run. The State of AI Tokens David Han, a research analyst at Coinbase, has expressed doubts about the future sustainability of AI tokens. He highlights that despite the appealing idea of decentralized AI, the current environment predominantly depends on centralized elements and data sources. This inconsistency presents a challenge to the long-term success of AI tokens. Although there is doubt, AI tokens have demonstrated strong performance…
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