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Will artificial intelligence start a rally?
Crypto projects and tokens based on artificial intelligence and big data are suffering losses, reflecting a market without clear direction. As a result, the altcoin sector in general is in turmoil as traders eagerly await signals from Bitcoin.
New analysis suggests that the dominance of the world’s largest cryptocurrency is increasing, which is holding back altcoin profits. A decrease in his dominance could be a huge relief for the alts.
Altcoin rally ahead?
The founders of Glassnode ‘Negentropic’ observed that Bitcoin’s dominance in the market is currently increasing, which has suppressed the gains of altcoins.
However, a potential decline in Bitcoin’s dominance could trigger significant rallies among altcoins. In particular, POWR, FTT and NMR emerged as the best among all. Bitcoin’s recent rally from a horizontal support level has further strengthened the market momentum.
“Will AI Further Enhance AI Altcoins? BTC dominance is increasing, suppressing altcoin gains. A decline in BTC dominance could trigger significant altcoin rallies.”
Looking ahead, AI-powered altcoins are expected to be in the spotlight over the next month, driven by key events such as NVIDIA’s earnings report on May 22, Apple’s WWDC on June 10, the potential launch of ChatGPT 5, the emergence of a GPT-based platform. search engine and the Google I/O event, which just took place.
These catalysts could significantly influence market sentiment and spur interest and investment in AI-focused cryptocurrencies.
At its annual I/O developer conference earlier this week, Google released Project Astra, which can provide real-time answers to user questions using text, audio, or video input. With this, the tech giant’s move aims to consolidate its dominance over the recent wave of generative AI technologies.
Despite Google’s new introduction, AI tokens have failed to recover. Data compiled by CoinGecko shows lackluster performance of major AI tokens throughout the week, with only a handful of them in the green.
VC Investments in Artificial Intelligence (AI)
Web3 and Artificial Intelligence (AI) have become the leading areas of investment in blockchain startups in 2023, securing more than 11% of total VC funding in the sector.
This is evident in Stan Miroshnik relationship at TenSquared (10SQ), which revealed that VC investments in Web3 and AI startups topped $637 million last year.