AI Tokens Surge Following Fed Interest Rate Cut
Over the past week, AI tokens have led the crypto market with an average gain of 37%, surpassing the market average of 15.9%. Bittensor saw an 86.2% increase, while other sectors like data services and gaming also performed well. Despite previous strong performances, memecoins lagged behind the overall market. Liquidity concentration among leading altcoins suggests market-makers are favoring established assets like Bitcoin.
In recent weeks, artificial intelligence (AI) tokens have emerged as the frontrunners in the cryptocurrency market, yielding an impressive average return of 37% over the past week, as reported by Artemis. This performance significantly outpaced the broader market, which registered an average gain of 15.9% during the same timeframe. A significant contributor to this remarkable growth was Bittensor (TAO), which surged by 86.2% within the last seven days. Furthermore, eleven AI-related tokens tracked by Artemis reported notable double-digit gains, with Artificial Superintelligence Alliance (ASI) and Render (RENDER) following closely, achieving weekly increases of 31% and 30.3%, respectively. Over the past 24 hours, AI tokens experienced an additional rise of 10.5%, in stark contrast to the overall market’s average gain of only 3.7%. Meanwhile, other sectors such as data services and gaming have demonstrated resilience as well. For instance, data availability related tokens like Celestia (TIA) and Dymension (DYM) achieved weekly gains of 27.1% and 33.6%, respectively, while the sector of real-world assets (RWA) mirrored the performance of gaming-related tokens, with both sectors rising by approximately 22.5%. On the other hand, native tokens associated with decentralized applications, including Uniswap (UNI) and Jupiter (JUP), managed a 15% gain, which fell marginally short of the market’s average. In contrast, memes coins, which had previously shown strong performance in the market, only averaged an 11.1% gain over the last week, which is approximately 5% lower than the total market average. Interestingly, a report published by Kaiko on September 23 highlighted a disparity among various altcoin sectors. The market depth for altcoins remained constant at $270 million during the third quarter, indicating that market makers continue to supply liquidity to these markets. However, the ten largest altcoins by market capitalization now account for 60% of the overall depth, a notable increase from 50% in early 2022. In contrast, the depth associated with the twenty largest altcoins has seen a decrease from 27% to 14% during the same period, suggesting potential risk reduction strategies adopted by market makers, who appear to be consolidating funds into leading assets like Bitcoin.
The cryptocurrency market has exhibited diverse performance among various sectors, particularly after significant monetary policy actions from central banks, such as the Federal Reserve’s interest rate adjustments. These changes can have profound implications for asset performance in this volatile market, influencing investor behavior and market trends. Additionally, the growing influence of artificial intelligence technologies has reshaped investment interests, leading to a marked uptick in AI-related cryptocurrencies as they capture market innovation and investor enthusiasm. As such, understanding sector-specific performances, underwritten by market reports and statistics, becomes crucial for stakeholders within the cryptocurrency space.
In summary, AI tokens have remarkably outperformed other sectors within the cryptocurrency market, driven by significant gains from top performers such as Bittensor, ASI, and Render. This surge contrasts with the modest performance of other sectors, including memes coins and decentralized applications. The findings from Kaiko indicate significant concentrations of liquidity among larger market capitalization assets, hinting at strategic shifts among market makers towards risk mitigation. Stakeholders should remain vigilant to these trends as they unfold in this dynamic environment.
Original Source: cryptoslate.com
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