A market data firm says artificial intelligence (AI)-focused crypto projects are seeing a drop in trading volume after buzzing earlier this year.
“AI-related tokens have lost momentum, hitting the lowest weekly trading volume since January.”
In January, rumors swirled that tech giant Microsoft was investing $10 billion in Open AI, a US-based AI research lab that created ChatGPT, an AI-powered viral chatbot.
At the time, AI-focused crypto projects including SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN) benefited greatly from the buzz surrounding the rumor, rising 136%, 91% and 37%, respectively.
According to Kaiko Research Analyst Riyad Carey, Worldcoin (WLD), a crypto project co-founded by OpenAI founder Sam Altman, had a “unique” launch earlier this week that is convincing people to use its eye-scanning technology.
“Worldcoin’s WLD launch is one of the most unique I can remember: almost 90% of the circulating supply was loaned out to market makers. Only 1% of the total supply has been released. The listing was (as expected) very efficient, although there were some suspected washout trades…
The launch suggests that the team felt they needed to assign an attractive monetary value to their token. Convincing people to scan their eyes for 25 units of a token that doesn’t yet exist can be tricky; if the price of the token is, say, $0.10, it’s even harder.
The 25 WLD tokens are currently worth just over $50 and will likely stay within that range for the next three months. So far, it seems to be getting people to sign up and scan.
Worldcoin is currently under investigation in the UK and France for privacy concerns.
Kaiko then focuses on XRP, the digital asset used to power Ripple Labs’ payment system, which recently had a landmark ruling in its favor against the United States Securities and Exchange Commission (SEC).
According to the data collection platform, the forward volume to open interest ratio of the token signals sustained speculative interest in the digital asset.
“The volume-to-open interest ratio of XRP perpetual futures remains above average on most exchanges, signaling sustained speculative interest.”
Moving on to the top two crypto assets by market capitalization, Bitcoin (BTC) and Ethereum (ETH), Kaiko find that they have seen a massive drop in volatility over the past three months.
“Both BTC and ETH have seen declines in 90-day realized volatility this year. Currently, their volatility levels are hovering around two-year lows.”
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