According to CryptoPotato, AI and big data crypto projects are currently facing losses, reflecting a market that lacks clear direction. This has resulted in turmoil in the broader altcoin sector as traders await signals from Bitcoin. Analysis suggests that the increasing dominance of Bitcoin is suppressing altcoin profits. However, a potential decrease in Bitcoin's dominance could trigger significant rallies among altcoins. Notably, POWR, FTT, and NMR have emerged as top performers.
Bitcoin's recent surge from a horizontal support level has further boosted momentum in the market. Looking ahead, AI altcoins are expected to be in the spotlight over the coming 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 search engine, and Google's I/O event. These catalysts could significantly influence market sentiment and drive interest and investment in AI-focused cryptocurrencies.
At its annual I/O developer conference, Google released Project Astra, which is capable of providing real-time responses to user queries using text, audio, or video inputs. This move aims to solidify Google's dominance over the recent surge in generative AI technologies. Despite this, AI tokens have failed to rally. Data shows major AI tokens' lackluster performance throughout the week, with only a few of them in the green.
Web3 and Artificial Intelligence (AI) became leading investment areas in blockchain startups in 2023, securing over 11% of total VC funding in the sector. This is evident in a report which revealed that VC investments in Web3 and AI startups exceeded $637 million last year.