• AI-focused crypto projects have seen a decrease in trading volume after an initial surge of interest earlier this year.
• Market data firm Kaiko says that tokens such as Oasis Network (ROSE), Render (RNDR), and The Graph (GRT) have lost some of their momentum.
• XRP’s perpetual futures volume-to-open interest ratio signals sustained speculative interest for the digital asset.
AI Crypto Projects Witness Downtick in Trading Volume
A market data firm has reported that artificial intelligence (AI)-focused crypto projects are experiencing a decline in trading volume after buzzing earlier this year. According to crypto intelligence firm Kaiko, AI-related tokens such as Oasis Network (ROSE), Render (RNDR), and The Graph (GRT) have recently lost their momentum.
Rumors of Microsoft Investment Into OpenAI
In January, rumors were swirling that tech giant Microsoft would be investing a staggering $10 billion into Open AI, a US-based AI research laboratory that created ChatGPT, a viral AI chatbot. At the time, AI-focused crypto projects greatly benefited from the buzz surrounding the rumor, rising 136%, 91%, and 37% respectively for SingularityNET (AGIX), Fetch.ai (FET), and Ocean Protocol (OCEAN).
Worldcoin Unique Launch
According to Riyad Carey, research analyst at Kaiko, 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 was nearly 90% of circulating supply loaned to market makers with only 1% of total supply released. Listing was efficient although there was suspected wash trading. It is believed that the team felt it had to assign an appealing dollar value to their token by offering 25 WLD tokens worth more than $50 which seemed to entice people to sign up and scan eyes for them despite not existing yet. However, Worldcoin is currently under investigation in both the UK and France over privacy concerns.
XRP Perpetual Futures Volume Signals Sustained Speculative Interest
Kaiko then shifts its focus on XRP, the digital asset used to operate Ripple Labs’ payments system which recently had a ruling in its favor against U.S Securities and Exchange Commission(SEC). According to the data gathering platform, XRP perpetual futures volume-to open interest ratio signals sustained speculative interest for the digital asset.
Overall, these recent market developments indicate that public sentiment towards AI related tokens may be waning along with significant regulatory scrutiny surrounding certain cryptos like Worldcoin but others such as XRP remain resilient despite challenges posed by regulators towards it’s status as security or not .