Altcoins
Will AI spark a rally?
AI and big data crypto projects and tokens are suffering losses, reflecting a market lacking clear direction. As a result, the broader altcoin sector is in turmoil as traders eagerly await signals from Bitcoin.
New analysis suggests the dominance of the world’s largest cryptocurrency is increasing, putting a damper on altcoin profits. A decrease in its dominance could be a huge relief for alts.
The upcoming Altcoin rally?
The founders of Glassnode, “Negentropic” observed that Bitcoin’s dominance in the market is currently on the rise, which has suppressed altcoins’ gains.
However, a potential decline in Bitcoin dominance could spark a significant recovery among altcoins. Notably, POWR, FTT and NMR became the best performers of the lot. Bitcoin’s recent rise from a horizontal support level has further boosted market momentum.
“Will AI super-boost AI Altcoins? BTC dominance is on the rise, suppressing altcoin gains. A decline in BTC dominance could trigger major altcoin rallies.
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, potential launch of ChatGPT 5, the emergence of a GPT-based system. search engine and the Google I/O event, which just took place.
These catalysts could significantly influence market sentiment and drive interest and investment in AI-driven cryptocurrencies.
At its annual I/O Developer Conference earlier this week, Google released Project Astra, capable of providing real-time responses to user queries using text, audio, or video input. With this, the tech giant’s move aims to consolidate its dominance over the recent rise of generative AI technologies.
Despite Google’s new introduction, AI tokens failed to rally. Data compiled by CoinGecko shows the lackluster performance of major AI tokens throughout the week, with only a handful of them in the green.
Venture Capital Investments in Artificial Intelligence (AI)
Web3 and artificial intelligence (AI) have become the main areas of investment in blockchain startups in 2023, securing more than 11% of the sector’s total venture capital funding.
This is evident in Stan Miroshnik’s work report to TenSquared (10SQ), which revealed that venture capital investments in Web3 and AI startups exceeded $637 million last year.