With Bitcoin stabilizing around $64,000, a new trend in the crypto landscape is becoming apparent. AI tokens such as Bittensor (TAO), Arkham (ARKM), and Internet Computer (ICP) are now outperforming meme coins, indicating a shift in investor interest.
These tokens are displaying strong market performance and are propelling technological advancements within the blockchain ecosystem. This shift signals a maturing market that is increasingly focused on innovation and real-world applications.
TAO Nearly Doubles in a Week
In the last 24 hours, the market cap of AI tokens has increased by over 10%, reaching an impressive $30 billion. Leading this surge, Arkham has appreciated by 11.7%. Following closely, Internet Computer has grown by 9.4%, with NEAR Protocol up by 8%, according to data from CoinGecko.
Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
This week, all prominent AI tokens have seen significant gains. For instance, Bittensor’s TAO token has registered an 85% rise, outpacing Arkham’s 52.7% and the Artificial Superintelligence Alliance’s (FET) 31.7% increases.
On a broader scale, AI represents the dominant narrative in the market. Data from Artemis reveals a 32.3% increase in AI tokens over the past week, while meme coins have only advanced by 10.4%, indicating reduced investor enthusiasm in that sector.
The rising interest in AI-focused cryptocurrencies correlates with significant advancements in technology. Recently, OpenAI launched its o1 model on September 12, featuring enhanced reasoning abilities that have captivated various industries, including crypto.
OpenAI’s newest AI models are expected to deliver improved efficiency in handling complex tasks. Some reports indicate that its smallest unit outperforms the GPT-4o in benchmark tests, tackling challenges akin to those faced by PhD candidates. This progress has elevated the status of AI tokens such as Worldcoin (WLD).
Read more: 9 Best Artificial Intelligence Stocks To Buy in 2024
Moreover, investor interest in AI has noticeably increased, highlighted by OpenAI’s recent funding activities. There are rumors of a robustly oversubscribed $6.5 billion funding round, valuing the company at $150 billion, with Bloomberg reporting that investor demand far exceeded the available shares.
Additionally, the introduction of AI features in Apple’s iPhone 16 along with Nvidia’s earnings report have also played a role in shaping the crypto landscape. Analysts are growing increasingly optimistic about the AI token sector.
“AI will define the next significant narrative during the upcoming alt run. What we experienced in 2023 was merely a precursor,” remarked Wizz, a pseudonymous crypto analyst, commented.
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