AI Tokens Record Lowest Weekly Volume Since January - A Sign Of Waning Interest?

AI Tokens Record Lowest Weekly Volume Since January – A Sign Of Waning Interest?

Time Stamp: July 29, 2023 5:09 AM

AI (artificial intelligence) tokens were one of the most promising assets in the cryptocurrency market at the beginning of 2023. One of the major drivers of this was the launch of ChatGPT – an AI-based chatbot – in late 2022, which propelled some AI-related cryptocurrencies to substantial gains.

However, the interest in this set of cryptocurrencies appears to be cooling, with data research firm Kaiko revealing a significant decline in trading activity for the AI-related tokens.

Lowest Weekly Trading Volume For AI Tokens

AI-related tokens registered their lowest weekly trading volume since January 2023, according to a recent data report from Kaiko. In this report, the research platform looked at the trading volume of six of the top seven AI tokens, including FET, INJ, ROSE, AGIX, RNDR, and GRT.

AI Tokens

Source: Kaiko/Twitter

This notable decrease in trading activity suggests a decline in attention from investors since the AI token frenzy peaked in January. And this appears to be reflected in the price performances of many AI-related cryptocurrencies.

The Graph (GRT), the largest AI token in the market, was one of the top gainers at the start of 2023, surging by roughly 122% to reach a yearly high of $0.2323 on February 7. However, the price of the GRT token has since plummeted, with a 51% decline from the 2023 peak.

Can ChatGPT & OpenAI Do It Again?

As mentioned earlier, the surge of interest in AI tokens was partly driven by the launch of ChatGPT. However, there has not been a similar effect on the AI and big-data crypto economy following the launch of Sam Altman’s Worldcoin project and WLD token.

On July 24, 2023, Altman, the CEO of OpenAI – the artificial intelligence company behind ChatGPT – rolled out his crypto product, releasing the World ID development kit and the WLD token. 

The WLD token soared more than 85% to reach an all-time high of $3.3 on the day of launch, according to CoinGecko data. However, the cryptocurrency’s price has declined by over 31% since hitting this peak.

Although there has been enthusiasm around the launch of Worldcoin, the project – especially its technology – has also been met with some skepticism. Notably, Ethereum co-founder Vitalik Buterin voiced his concern over the project’s iris-scanning hardware and biometric data collection practices.

Meanwhile, Worldcoin looks set to face some regulatory scrutiny, with the UK’s data regulator Information Commissioner Office (ICO) already making inquiries. France’s privacy regulator CNIL has also questioned the legality of the project’s biometric data collection.

While the Worldcoin project and the WLD token seem to be gaining some traction at the moment, it remains to be seen how they will impact the AI and big-data crypto economy. As of this writing, the WLD token changes hand at $2.27, with a 6.8% price increase in the past day.

AI Tokens

WLDUSD trading at $2.262 | Source: daily WLDUSD chart from TradingView

Featured image from iStock, chart from TradingView

Time Stamp:

More from NewsBTC