Oct 16, 2024

6thTrade

October has brought a wave of renewed interest in AI-related projects, as investors, both individual and institutional, shift focus from meme coins to AI tokens. Meme coins may still have their appeal, but data suggests that the spotlight could soon be shining brightly on AI projects in the final months of the year.

This resurgence of AI tokens is no accident. Beyond just the hype, investment funds and venture capitalists are increasingly drawn to the real potential of AI in shaping future technology. Recent findings from CoinGecko reveal that AI projects receive roughly 9.66% of the platform’s total traffic—translating to around 2 million views each month out of over 20 million monthly visits. This demonstrates a substantial interest in AI tokens, just slightly behind that of meme coins and Solana-based tokens.

AI Tokens Show Strong Market Growth

Despite trailing in total traffic, AI tokens have surged in market performance. October data from Artemis shows that the AI coins portfolio experienced an impressive 53.7% increase in value over the last 30 days, outperforming other sectors by a factor of three. This explosive growth isn’t going unnoticed. CoinMarketCap data reveals that the market capitalization for AI coins has more than doubled from $18 billion in August to over $37 billion in October.

Daily trading volumes for AI tokens are also worth noting, consistently exceeding $2 billion throughout October, which is double the average from the previous two months. These trends reflect a growing demand and a belief among investors that AI tokens could offer compelling long-term potential. $RENDER

Venture Capitalists Bet Big on AI

The interest in AI tokens isn’t limited to individual traders. Venture capital (VC) firms are becoming key players in supporting AI projects. Unlike meme coins, which many VCs view with skepticism, AI holds clear promise for reshaping technology and society. A recent Galaxy report identified AI as one of the top five sectors VCs invested in during Q3 2024, with most funding directed at seed and early-stage rounds. This level of commitment underscores a broader confidence in AI’s long-term growth potential.

One notable example is VanEck Ventures, launched by the New York-based investment firm VanEck, with a strong focus on cryptocurrencies and AI. Wyatt Lonergan, a General Partner at VanEck Ventures, highlighted three major shifts driving their investment strategy: the emergence of stablecoins as an open-source banking layer, the commoditization of blockspace, and breakthrough advancements in AI. These trends, he believes, are reshaping the foundations of the internet and hint at a future where AI plays a vital role in daily life and global markets. $FET

The Future is Bright for AI in Crypto

As we head into the final months of the year, the enthusiasm around AI tokens is palpable. Investors are increasingly recognizing the transformative potential of AI, not only within the crypto space but also as a fundamental driver of innovation across sectors. With trading volumes on the rise and substantial market growth, AI tokens are quickly becoming a favorite among forward-thinking investors who see beyond the allure of meme coins.

While meme coins continue to capture public attention, it’s clear that AI tokens are stepping into the spotlight. Backed by interest from VCs and investment funds, AI-related projects are positioned for significant growth. This surge in demand underscores the potential of AI tokens to become a major player in the crypto market, and for savvy investors, the time to explore these opportunities may be now.

Images Credit : Coingecko, Artemis, Galaxy Research


Disclaimer: The content of this article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and may lead to substantial financial loss. Always perform your own research and consult a qualified financial advisor before making any investment decisions. The opinions expressed are solely those of the author and do not represent the views of the publisher or its affiliates. Investing in cryptocurrencies involves inherent risks, and past performance is not a reliable indicator of future results. Please exercise caution.


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