The AI token sector was hit hard over the last seven days but recovered strongly.
TL;DR…
- BTC Resilient in Turbulent Market: BTC climbed 4.3%, buoyed by lower-than-expected CPI data at 2.9%, propelling a broad crypto rally.
- AI Token Sector's Mixed Results: Despite a rough week, seven of the top 10 AI tokens ended positive, with notable downturns in ICP, RNDR, and TAO.
- ChainGPT's Stellar Performance: CGPT surged 80.8% after a Binance listing, approaching its all-time high, highlighting strength in AI-focused tokens.
- Key AI Developments Impacting Market: Biden's executive order boosts AI infrastructure, and the 0G Foundation's $30M node sale underscores significant growth in AI investments.
The last week was a wild time for many cryptocurrency holders, with Bitcoin (BTC) briefly dipping under $90,000 while many altcoins experienced shattering losses.
But the bloodbath was short-lived, with the vast majority of cryptocurrencies bouncing strongly as of today.
Let’s dive in and look at how the AI sector held up during this time.
>> Did you miss last week’s AI recap? Check it out here.
Market Overview
Despite the extremely choppy market conditions over the last week, Bitcoin (BTC) has remained in the green, posting a 4.3% gain.
Source: Bitcoin (BTC) Coin Page
This growth largely manifested earlier today, when the December core Consumer Price Index (CPI) data came in softer than many expected, at 2.9%.
The news sent ripples throughout the crypto market, sending the vast majority of assets soaring and allowing many to recoup their losses seen earlier in the week.
The vast majority of altcoins are now in the green over the last seven days, with only around 10% of the top 100 cryptocurrencies by market cap in the red over this period.
During this recovery, Bitcoin has seen its dominance spike back to 56.7%, indicating altcoins are still lagging behind the OG cryptocurrency. This is further corroborated by the CMC Altcoin Season Index which stands at 48/100, indicating less than half of altcoins have beaten Bitcoin's returns over the last 90 days.
Source: CMC Crypto Fear and Greed Index
The CMC Crypto Fear & Greed Index now stands at a neutral 51—up from a low of 43 late last week.
AI Market Recap
The AI token sector was hit hard over the last seven days but recovered strongly. Seven of the top 10 largest AI tokens are now positive over this period, with the only exceptions being Internet Computer (ICP), Render (RNDR) and Bittensor (TAO) which are down 1-5% apiece.
Source: Top AI & Big Data Tokens Page
The AI token sector’s market capitalization (mcap) now sits at $52.7 billion—up 1% from last week's figure of $52.1 billion.
Today’s December CPI data broke many AI tokens out of a death spiral, helping them recoup some of their earlier losses.
With that said, several tokens are still down considerably for the week. Some of the worst affected tokens include:
- Sentio Protocol (SEN): lost 27.9%
- Zero1Labs (DEAI): lost 19.2%
- NetMind Token (NMT): lost 17.9%
- neur.sh (NEUR): lost 17.3%
Fortunately, many AI projects managed to either buck the recent downtrend completely or recover their recent losses to remain positive over the last seven days.
Some of this week’s most notable examples include:
- ChainGPT (CGPT): This week's best performer, CGPT gained 80.8% after securing a spot listing on Binance. The token is now near its all-time highest price.
- Altura (ALU): After securing a perpetual contract listing on Bybit, ALU gained 20.5% this week to reach a $150 million market cap.
- Limitus (LMT): Despite primarily trading on DEXs, the LMT token gained 11.9% over the last week on significant trading volume.
Source: ChainGPT (CGPT) Token Page
The AI Agent subsector has continued to show remarkable strength over the past week, with five out of the top 10 AI Agent tokens in the green during this period.
Source: Top AI Agent Tokens Page
The best performers in the AI Agent sector are dominated by tokens associated with the Virtuals Protocol. Indeed, seven of the top 10 AI Agent tokens by seven-day returns are derived from the Virtuals Protocol ecosystem.
Fartcoin (FARTCOIN) continued its relentless growth this week, gaining 7.6% across the last seven days following a recovery from $0.95 to $1.14 earlier today. It’s now the 10th-largest meme coin by market cap and is just inches away from knocking Brett (BRETT) out of 9th place.
>> Keep tabs on your favorite meme coins here.
Despite its recent recovery, the AI sector is underperforming in terms of mcap-weighted returns. Overall, it’s down -1.3% in mcap-weighted returns, while many other sectors have managed to gain market share over the last week. It's currently the 16th-worst-performing category of the 22 categories tracked by the platform.
AI News Roundup
While the AI token market recovers from its recent choppy price action, interesting developments continue to take place behind the scenes.
Some of the most significant stories for this week include:
President Biden's Executive Order on AI Infrastructure: President Biden signed an executive order to strengthen U.S. leadership in AI, enhancing national security and economic competitiveness. The order directs the lease of federal sites for AI data center construction, supports clean energy, and emphasizes AI safety and affordability for Americans. (source)
0G Foundation Secures $30 Million Through AI Node Sale: The 0G Foundation successfully raised $30 million by selling 85,000 AI nodes, marking this achievement as the second-largest in Web3's history for node offerings. The funds will support the decentralization and robustness of AI operations, ensuring better control and ethical adherence within their network.
AI Agent ElizaOS To Take Physical Form: ElizaOS, an AI agent, is being developed into a humanoid robot designed for productivity and companionship, not for sexual purposes. It aims to foster human-like interactions through emotional intelligence and task performance. The advanced humanoid will also be customizable, with pre-orders priced at $420,000, set for mid-2025 delivery.
>> That’s a wrap for this week’s AI recap. Join us next week for more AI news, updates, and analyses.
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