- Despite outperforming many altcoins, NEAR’s price was in danger of falling below $5
- On-chain data showed that FET and RNDR could be in line for a recovery
Contrary to what happened in the first quarter of 2024, the overall market capitalization of AI coins has fallen recently. In fact, at the time of writing, its value was “only” $28.86 billion.
While prices and market cap may have fallen, one cannot deny that these tokens have been a revelation this cycle. For example, cryptocurrencies such as Render [RNDR]Bit tensor [TAO]and Fetch.ai [FET] have outperformed many of the altcoins on the market.
And the reason is striking. Artificial intelligence, popularly called the short form of AI, has made several development steps in the past year. Some of these range from the growing demand for GPUs, ChatGPT adoption, and Nvidia’s sky-high market cap.
Now let’s see how far some of these AI coins have done in 2024, and what’s in store for the rest of the year. For this article, AMBCrypto would focus on the top three AI coins: NEAR Protocol [NEAR]FET and RNDR.
NEAR represents a new round of decline
NEAR is a layer-one project operating at the intersection of blockchain and AI. By doing this, the protocol provides scaling solutions for applications while improving across the network.
At the time of writing, NEAR’s price was $5.06. Earlier this year, the token’s value had risen from $2.64 to $8.90 between January and March. However, a decline of 30.02% in the last 30 days means most of these gains have been lost.
One specific factor that has driven NEAR’s price is its development activity. According to AMBCrypto’s analysis, the price of the token increases when development on the network is at a good level.
In non-technical terms, development activity refers to the work done to get a blockchain functioning at its highest level. When it rises, it means developers are releasing new features.
However, as one of the best AI coins a reject in the metric causes bearish signals for the price. At the time of writing, the metric had fallen and was nowhere near the peaks it previously reached.
Source: Santiment
If this continues, NEAR’s price could fall below $5 in the near term. Additionally, the weighted sentiment surrounding the token was negative, indicating that there were more negative comments than positive comments about it.
If this continues, demand for NEAR could be difficult to come by. As such, the price may fall. However, this prediction will be debunked if there is a major development in the AI sector or if purchasing pressure increases.
Activity on the Fetch.ai network is skyrocketing
FET, now known as part of the artificial superintelligence [ASI] Alliance was one of the AI coins that reached a new all-time high in 2024. Specifically, FET reached $3.47 on March 28 this year.
Despite the integration with other AI tokens, the hype around FET has died down, and this has affected the value of the token. At the time of writing, the FET was changing hands at $1.24, representing a decline of 29.76% in the last seven days.
Unfortunately, the price of the cryptocurrency could rise again in the future. AMBCrypto evidence found of this potential after a look at Fetch.ai’s network activity. According to IntoTheBlock, FET’s new, active, and zero-balance addresses have increased in recent days.
Such growth implies that the network is gaining good traction and that adoption is at a healthy level. Should addresses continue to rise, FET’s price could also follow suit, as this is a sign of demand for the token.
Source: IntoTheBlock
If this continues, the FET could prevent the price from falling below $1. Instead, the cryptocurrency could start a move that takes it closer to $2 in the coming weeks.
It’s time to Render [RNDR]?
RNDR was one of the breakout stars of this cycle. As a GPU rendering network built on the Ethereum blockchain, positive developments around the booming GPU market helped RNDR’s price rise.
Like FET, RNDR reached a new all-time high in March. However, the price has since fallen from $13.60 to $7.08 – almost half its value. Meanwhile, AMBCrypto checked whether the decline presents a buying opportunity.
To do this, we looked at the price-DAA divergence. DAA stands for Daily Active Addresses and measures user activity on a blockchain. Overall, the price-DAA divergence compares whether a token’s value is growing faster than activity on the network or not.
If the value is positive, it means that the price is growing faster than the activity. When this happens and the value is extremely high, it is a sell signal.
Source: Santiment
In this case, the price DAA at the time of writing was -606.44%. This implied that the participation rate on Render’s network was high higher than the level of price growth. Simply put, the negative value implied that RNDR may have provided a buy signal that had not been seen for a long time.
Realistic or not, here is NEAR’s market cap in RNDR terms
If this continues, it could yield a higher value and push the price of RNDR past $9. Other AI coins in the spotlight include Injective [INJ] and The Graphics [GRT].