AI Tokens Record Lowest Weekly Trading Volume Since January – A Sign Of Waning Interest?
July 29 2023 - 5:09AM
NEWSBTC
AI (artificial intelligence) tokens were one of the most promising
assets in the cryptocurrency market at the beginning of 2023. One
of the major drivers of this was the launch of ChatGPT – an
AI-based chatbot – in late 2022, which propelled some AI-related
cryptocurrencies to substantial gains. However, the interest in
this set of cryptocurrencies appears to be cooling, with data
research firm Kaiko revealing a significant decline in trading
activity for the AI-related tokens. Related Reading: Traders’
Interest In XRP Remains Solid Despite Price Retreat, Data Shows
Lowest Weekly Trading Volume For AI Tokens AI-related tokens
registered their lowest weekly trading volume since January 2023,
according to a recent data report from Kaiko. In this report, the
research platform looked at the trading volume of six of the top
seven AI tokens, including FET, INJ, ROSE, AGIX, RNDR, and GRT.
Source: Kaiko/Twitter This notable decrease in trading activity
suggests a decline in attention from investors since the AI token
frenzy peaked in January. And this appears to be reflected in the
price performances of many AI-related cryptocurrencies. The Graph
(GRT), the largest AI token in the market, was one of the top
gainers at the start of 2023, surging by roughly 122% to reach a
yearly high of $0.2323 on February 7. However, the price of the GRT
token has since plummeted, with a 51% decline from the 2023 peak.
Can ChatGPT & OpenAI Do It Again? As mentioned earlier, the
surge of interest in AI tokens was partly driven by the launch of
ChatGPT. However, there has not been a similar effect on the AI and
big-data crypto economy following the launch of Sam Altman’s
Worldcoin project and WLD token. On July 24, 2023, Altman, the CEO
of OpenAI – the artificial intelligence company behind ChatGPT –
rolled out his crypto product, releasing the World ID development
kit and the WLD token. The WLD token soared more than 85% to
reach an all-time high of $3.3 on the day of launch, according to
CoinGecko data. However, the cryptocurrency’s price has declined by
over 31% since hitting this peak. Related Reading: Why Worldcoin
(WLD) And PEPE Dominate The Crypto Market Trends This Week Although
there has been enthusiasm around the launch of Worldcoin, the
project – especially its technology – has also been met with some
skepticism. Notably, Ethereum co-founder Vitalik Buterin voiced his
concern over the project’s iris-scanning hardware and biometric
data collection practices. Meanwhile, Worldcoin looks set to face
some regulatory scrutiny, with the UK’s data regulator Information
Commissioner Office (ICO) already making inquiries. France’s
privacy regulator CNIL has also questioned the legality of the
project’s biometric data collection. While the Worldcoin project
and the WLD token seem to be gaining some traction at the moment,
it remains to be seen how they will impact the AI and big-data
crypto economy. As of this writing, the WLD token changes hand at
$2.27, with a 6.8% price increase in the past day. WLDUSD trading
at $2.262 | Source: daily WLDUSD chart from TradingView
Featured image from iStock, chart from TradingView
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