Memecoins
AI Tokens Take the Baton from Memecoins to Drive a Market Rebirth ⋆ ZyCrypto
After last week’s bloodbathCryptocurrency prices have started to rise north again, this time on the back of artificial intelligence (AI) projects.
The price recovery sees AI-themed tokens record the biggest gains in a week, with leading tokens easily reaching double digits. The AI-powered RNDR surged more than 40% on seven-day charts, becoming the biggest gainer among the top 100 cryptocurrencies by market capitalization.
Paired with other niches, other AI-themed tokens could not compete with the broader market. Fetch.ai (FET) rose 23% in a week to erase previous losses, while Bittensor (TAO) and SingularityNet (AGIX) also posted double-digit gains.
For comparison, Bitcoin could only manage a gain of less than 4% over the same period, while Ethereum (ETH) and Cardano (ADA) posted gains of just 1%.
A bird’s-eye view of broader financial markets offers some insights into the AI-backed cryptocurrency resurgence. Following the company’s upcoming financial data release, experts expect AI chipmaker Nvidia to post impressive first-quarter results, with one analyst forecasting earnings of $5.49 per share.
“There is a lot of buzz around Nvidia’s upcoming earnings,” one analyst said. “AI coins will continue to have cyclical cycles as they are directly related to all the AI-side development happening around us.”
The AI ecosystem has been in full swing since late 2022, accentuated by the launch of several AI models by major industry players. OpenAI, Google, Microsoft and Anthropic have emerged as pioneers in this space, while others are turning to blockchain for their AI offerings.
A cross-section of analysts predict that the AI craze will continue for the foreseeable future, supported by the injection of new capital into the design and commercial launch of powerful AI models.
“OpenAI will launch a new model in the coming months, better hardware will be developed, and more funds will be invested in the space,” said DYOR founder Hitesh Malviya. “We are in an AI super cycle right now.”
Memecoins may be running out of energy
In the first quarter, memecoins attracted impressive attention come back for investors, but recent data on the chain indicates a reversal. While Dogecoin (DOGE) looks set to gain 20% over the course of a week, other memecoins have not had a rosy climb in recent days.
Shiba Inu (SHIB) has fallen nearly 4% in the past 24 hours, while Pepe (PEPE) has fallen 6.19% in the same time frame. Based on Solana dogwifhat (WIF) appears to be the biggest loser, with losses approaching 12% over the past day, and analysts believe investors may be paying close attention to the utility of the tokens.