Decrease in Trading Volume Observed for AI Crypto Projects Post-Initial Buzz: Market Data Firm Reports

A market data firm says that artificial intelligence (AI)-focused crypto projects are experiencing a decline in trading volume after buzzing earlier this year.

As per insights from crypto intelligence firm Kaiko, AI-related tokens like Oasis Network (ROSE), Render (RNDR), and The Graph (GRT) have experienced a decline in momentum, reaching their lowest weekly trade volume since January.

In January, there were swirling rumors about a remarkable $10 billion investment by tech giant Microsoft into Open AI, a renowned US-based AI research laboratory that gave birth to ChatGPT, a widely popular AI chatbot.

At that time, AI-focused crypto projects like SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN) experienced significant gains, rising by 136%, 91%, and 37% respectively, fueled by the excitement around the Microsoft investment rumor.

Riyad Carey, a research analyst at Kaiko, shed light on the "unique" launch of Worldcoin (WLD), a crypto project co-founded by OpenAI's founder Sam Altman. The launch involved almost 90% of the circulating supply being loaned to market makers, with only 1% of the total supply released. While the listing process was efficient, there were suspicions of wash trading.

The WLD launch aimed to assign an appealing dollar value to their token to incentivize people to use their eye-scanning technology. The team offered 25 WLD tokens, currently valued at a little over $50, which is expected to remain in that range for the next three months, enticing users to sign up and scan their eyes.

Worldcoin is currently facing investigations in the UK and France due to privacy concerns.

Kaiko then shifted its focus to XRP, the digital asset used in Ripple Labs' payments system, which recently had a favorable ruling against the U.S. Securities and Exchange Commission (SEC).

According to the data gathered, XRP's futures volume-to-open interest ratio indicates sustained speculative interest in the digital asset.

Analyzing the top two crypto assets by market cap, Bitcoin (BTC) and Ethereum (ETH), Kaiko found that they experienced a significant decline in volatility over the past three months.

"Both BTC and ETH have seen a decline in 90-day realized volatility this year. Currently, their volatility levels are hovering around two-year lows."

Jul 30, 2023