Bitcoin (BTC) of late has enjoyed a price rally that saw the largest cryptocurrency by market capitalization spike from $19,669 to $28,330 between March 10 to 20, 2023. In that regard, other crypto assets including some AI tokens have responded to the price rally within that period.
Top AI tokens like GRT, AGIX, RNDR, ROSE, and FET reacted positively to the price surge of BTC, with the majority of the token recording more than 40% gain. RNDR outperformed its peers recording a 57% increase, while ROSE recorded the least price surge among these tokens with a 19% value growth within the review period.
Meanwhile, the above-listed coins came under this review due to their sizable contribution to the Market capitalization of the entire AI tokens. According to Coinmarketcap, the AI tokens market cap is worth $5.4 billion with the coins under review contributing about $2.8 billion to the figure. Recall that the BTC price rally started on March 10, 2023. Therefore, this piece will focus on the performance of GRT, AGIX, RNDR, ROSE, and FET from March 10 to March 20, 2023.
While their performances differ as some of these AI tokens outperformed their counterparts in this category. However, their performance ranged between 19% to 57%, though this return might look minimal, yet, it is pointing to how these AI tokens are gaining gradual attention in the market and how the BTC surge of late has impacted their growth. While AI tokens are gaining more recognition in the crypto market of late, there are a host of interesting factors that have contributed to their emergence. Read this article for more insightful knowledge about the pros and cons of AI tokens.
Low Performers Among The Top 5
5. ROSE (+19%)
From the least to the best performer ROSE ranked 5th on the list. During this period, the native coin of the Oasis network enjoyed a minimal 19% price increase. The token went up from $0.04956 to $0.05901 within the review period. However, Four days into the price rally, ROSE surged to $0.06755 before plunging to $0.5766 two days later.
Further insights into the market capitalization of ROSE reflected how the coin enjoyed an inflow of about $10 million. As projected, the market cap of the Oasis native coin surged from $283 million to $383 at the height of the surge. Within that period, the market cap of BTC had moved from $381 billion to $486 billion. These pointers reflected how ROSE responded to the BTC surge.
Worth noting that the Oasis network is a privacy-oriented layer-1 blockchain that embraces high throughput, security, and inexpensive transaction fee in offering an innovative base for Web3, GameFi, NFT, Metaverse, DeFi, Data tokenization and Data DAOs.
4. GRT (+39%)
The Graph Network is designed by renowned developers from top crypto projects like Ethereum and Decentraland. The project is an indexing protocol for querying data from top ecosystems like Ethereum. According to findings, the innovation has powered solutions from the DeFi and Web3 space.
Meanwhile, the native token of this protocol went up by a total of 39% between March 10 to 20, 2023. This increase reflected a price rally that saw the token surge from $0.1101 to $0.1538. At the height of the price surge, GRT attained a price level of $0.1721. Findings into the market cap of the coin saw how it enjoyed an increase from $966 million to $1.39 billion. More so, at the height of the surge, GRT’s market cap attained $1.5 billion at the height of the surge. As at March 21, 2023, the market cap of GRT is at $1.3 billion.
3. FET (+42)
Sitting third (3rd) on the list, FET soared by 42% within the review period, this hike amounted to a price improvement from $0.2993 to $0.4253. Accordingly, this sudden growth also reflected in the market cap of FET. The market cap of the coin surged from $245 million to $342 million reflecting a 39% increase.
More so, FET is a native token Fetch.AI; an artificial intelligence firm that focuses on designing an open, permissionless, and decentralized learning system in the crypto space. The firm aims to decentralize the gateway to AI initiatives through a democratic system that aids users to connect and use secure datasets.
2. AGIX (+49%)
AGIX is the native coin of SingularityNET which is a blockchain-supported platform that aids users to seamlessly design, share and monetize AI services through its Marketplace. Further, the marketplace employs AGIX to support users to browse, test and acquire a host of AI services.
Since March 10, 2023, the coin enjoyed a steady increase from $0.3249 to $0.4868 amounting to a 49% price growth. At the height of the price rally, AGIX attained a price level of $0.5795 which coincides with BTC’s price rally that saw the coin surge from $19,976 to $27,390 as of March 18, 2023.
More investigation into the market cap of AGIX indicated how it went up by 60% amounting to an increase from $384.78 million to $617.86 million within the review period.
Despite being third on the list of largest AI tokens by market capitalization, RNDR is flying high on the list of top tokens in its sphere that reacted positively to the recent price surge of BTC. Within March 10 to 20, 2023, RNDR surged from $0.9346 to $1.4747. This increase sums up to 57% increase, therefore, placing the coin high above its peers.
Additionally, pointers indicated that the market cap of the coin rallied from $245.96 to $533.53, a notable increase of 117%. Worth mentioning that RNDR is an ERC-20 utility coin of the Render network. Artists on the network utilize the coin as a means for exchange for GPU computing capacity from node operators who are the suppliers of GPU on Render.
Why Are AI Tokens Recording Price Rallies
Worth noting that AI tokens have enjoyed a great degree of attention since the release of ChatGPT, an AI chatbot from OpenAI in November 2022. The success and global acceptance of this chatbot led to the craze of AI adoption in different sectors. This attention led to the increase in value for AI tokens. Backing this claim, the impact of the introduction of ChatGPT on these tokens is evident in how FET rallied by 95% within the first 30 days the chatbot was introduced. Consequently, the release of the advanced version of GPT-4 has further strengthened the growing attention.
Insight Into The Recent BTC Surge
BTC got somewhat of a price revival following the collapse of crypto-friendly banks such as Silvergate, Signature Bank, and Silicon Valley Bank. The collapse of these banks marked the beginning of a banking crisis in the U.S that required urgent attention from the Joe Biden administration. BTC is regarded as the leading crypto asset, read this article to understand why BTC has enjoyed a strong dominance in the crypto market.
Silicon Valley Bank is one of six banking partners Circle uses for managing the ~25% portion of USDC reserves held in cash. While we await clarity on how the FDIC receivership of SVB will impact its depositors, Circle & USDC continue to operate normally.https://t.co/NU82jnajjY— Circle (@circle) March 10, 2023
Accordingly, the meltdown proved a turning point for BTC which traded below $24,000 for the most of the year before the meltdown. The collapse of these banks birthed a massive inflow of cash into BTC which saw its market capitalization spike to $547 billion shortly after the crisis. While the development proved a blessing for BTC, at the inception of the crisis, stablecoins like USDC, DAI, USDD and FRAX plunged below their peg.