Aug 27, 2024 at 01:00
The market capitalization of cryptocurrencies focused on artificial intelligence and big data has seen a remarkable 79.7% increase over the past three weeks, signaling a resurgence in investor optimism.
On August 6, the combined market cap of AI and big data tokens hit a yearly low of $18.21 billion, mainly due to their indirect connection to the struggling Bitcoin and broader cryptocurrency markets. At that time, Bitcoin’s price plummeted below $50,000.
Bitcoin’s Influence on AI Tokens
According to CoinMarketCap data, the AI and big data token ecosystem mirrored Bitcoin’s recovery, pushing its market cap beyond $38 billion by August 25.
As of August 27, the top AI and big data tokens by market cap included Near Protocol (NEAR) at $5.5 billion, Internet Computer (ICP) at $3.8 billion, Artificial Superintelligence Alliance (FET) at $3.4 billion, and Bittensor (TAO) at $2.8 billion.
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Earlier market volatility dampened investor sentiment, driving the fear and greed index by Alternative.me to “extreme fear” levels.
Recovery and Growing Investor Optimism
However, as markets rebounded, the sentiment shifted to “neutral” as investors sought to recover losses. The Fear & Greed Index, which gauges investor emotions, has become a valuable tool for guiding investment strategies.
Onchain analytics platform Lookonchain highlighted significant gains and noted unusual whale activity in FET in an August 26 post on X (formerly Twitter). A whale seemingly regretted an earlier sale, spending $2.38 million in Tether (USDT) to repurchase 1.79 million FET tokens at $1.33 each on August 25, after selling them at a lower price.
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