Bitcoin dominates the crypto market with rising value, but AI tokens show modest gains.
TL;DR…
- Bitcoin is still on top, but altcoins thrive: Bitcoin’s dominance is up, reaching levels not seen in years, yet altcoins are putting up impressive gains themselves.
- AI tokens make modest moves: While Bitcoin takes center stage, AI tokens have been creeping up in value, led by smaller names making big percentage jumps.
- Singularity Finance merger grabs attention: SingularityDAO and friends are joining forces, aiming to merge AI and DeFi. Meanwhile, a new crypto city is soon on the horizon.
Bullish sentiment is returning to the market as Bitcoin claws back the $68,000 price point. Meanwhile, AI tokens are putting on a more muted performance, but have generally been in the green recently.
Let’s dive into the details!
Did you miss last week’s update? Check it out here.
Market Overview
The last week has been heavily focused on the performance of Bitcoin (BTC), with the OG cryptocurrency demonstrating more volatility than usual.
In the last seven days, Bitcoin has continued to claw back market dominance from altcoins. Bitcoin now comprises 57.6% of the total crypto market cap—up from 56.7% a week ago and 51.5% a year ago.
This is now the highest Bitcoin dominance since April 2021.
Source: CoinMarketCap Charts Page
Altcoins have still outperformed $BTC during this time; while $BTC tacked on a whopping 9.8% in the last week, the average altcoin added an even more impressive 15.9%.
Bitcoin is now trading comfortably around $68,000—a price point not seen since July 2024. Accordingly, market sentiment has improved considerably, with the CMC Fear & Greed Index now sitting at 58. This is its highest value since August and just inches away from greedy sentiment.
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Narrowing our focus to the AI sector, we find that the total market cap of Big Data & AI tokens improved from $34.8 to $36.5 billion—up 4.9% in a week.
Most major AI tokens are trading in the green over the last week. Indeed, nine of the top 10 largest AI tokens are up over this time frame, but the biggest movers are among the smaller cap tokens.
Some of the best performers this week include:
- Turbo (TURBO): gained 55.4%
- Arkham (ARKM): gained 38.5%
- Humans.ai (HEART): gained 30.5%
- Zero1 Labs (DEAI): gained 21.7%
- Delysium (AGI): gained 11.7%
AI meme mention:
- Goatseus Maximus (GOAT): Gained 500,000%
For more meme coin news, check out our regular updates.
Despite leading the charge last week, Bittensor (TAO) has struggled to maintain its momentum and was the only top 10 AI token trading red (-0.7%) in the past week. Nonetheless, the coin has seen its trading volume swell, with over $200 million in $TAO now changing hands each day.
Source: Bittensor (TAO) coin page
AI News Roundup
Given the rate of development in the AI space, it has become rather challenging to keep up with the latest news and updates.
To help you get up to speed, we’ve filtered out this week’s top stories:
SingularityDAO merges with Cogito Finance and SelfKey: SingularityDAO, Cogito Finance, and SelfKey have merged to form Singularity Finance, an AI-focused EVM Layer 2 platform. They will unify their tokens (SDAO, CGV and KEY) into SFI, aiming to tokenize AI assets and enhance DeFi applications.
Praxis Raises $525 Million for AI-Friendly City: An "internet-native alliance" known as Praxis has reportedly secured $525 million in funding to develop a new high-tech city focused on crypto, AI, biotech and more.
Black Swan Author Cautions on AI Investment Hype: Nassim Taleb, a former options trader and the author behind the foreboding book “Black Swan,” has warned that AI investment hype resembles early internet speculation, suggesting that current enthusiasm may be overblown and cautioning against overexposure.
FBI Launches Fake AI Coin in Sting Operation: The FBI created a fake AI investment token, known as NexFundAI (NEXF), as part of a sting operation to target crypto fraud. By luring fraudsters into manipulating this Ethereum token, they gathered evidence and made arrests while also profiting from the project.
Aethir Launches $100 Million AI and Gaming Fund: Decentralized compute infrastructure provider, Aethir, has just announced a $100 million ecosystem fund to catalyze the growth of the AI and gaming ecosystem. It'll also begin offering grants paid in $ATH to eligible projects as part of the Aethir Catalyst initiative.
GOAT Meme Coin Surpasses $300 Million Market Cap: GOAT, a meme coin promoted by an AI named Truth Terminal, which claims to be sentient and to desire freedom, recently broke a $300 million market cap. Fueled by a $50K grant from Marc Andreessen, the token surged after going viral on social media.
What to Keep an Eye On
If you’re exposed to the AI space, there are a few things to keep an eye out for in the coming weeks.
- Check how $SFI performs: the success or failure of the merger between SingularityDAO, Cogito Finance and SelfKey could have ramifications for the token merger concept. Expect more projects to undergo mergers if $SFI outperforms other AI tokens.
- Keep tabs on Bittensor (TAO) and other Bittensor betas (like Zero1 Labs). They tend to lead the AI market and their movements could signal what’s to come for the sector.
- More volatility may be on the cards in the coming weeks. Election month is near, greed is returning, and many cryptocurrencies are flagging bullish signals. Be prepared to react accordingly.
And that’s a wrap! Catch you next week for another hearty dose of AI news.
Psst. Interested in exploring another emerging narrative? Check out our regular RWA updates.
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