As a professional translator, I would translate this news article as follows:
Contrary to the situation in the first quarter of 2024, the total market value of AI tokens has recently been declining. In fact, as of the time of writing, their value is “only” $28.86 billion.
Although the prices and market values may have plummeted, it is undeniable that these tokens have performed well in this cycle. For example, cryptocurrencies such as Render [RNDR], Bittensor [TAO], and Fetch.ai [FET] have outperformed many altcoins in the market.
The reasons are obvious. Artificial Intelligence (AI), commonly known as AI, has made significant advancements in the past year. This includes the growing demand for GPUs, the adoption of ChatGPT, and the surge in Nvidia’s market value.
Now, let’s take a look at how these AI tokens have performed in 2024 and what the prospects are for the remaining time of the year. In this article, AMBCrypto will focus on three major AI tokens – NEAR Protocol [NEAR], FET, and RNDR.
NEAR Faces a New Decline
NEAR is a Layer-1 project operating at the intersection of blockchain and AI. In this way, the protocol provides scaling solutions for applications while increasing network throughput.
As of the time of writing, NEAR’s price is $5.06. Earlier this year, the token’s value rose from $2.64 to $8.90 between January and March. However, a 30.02% decline in the past 30 days means that most of the gains have been wiped out.
A particular factor that drove the increase in NEAR’s price was development activity. According to AMBCrypto’s analysis, as long as network development remains at a good level, the token’s price will rise.
In non-technical terms, development activity refers to the work done to keep the blockchain running at its highest level. When it increases, it means that developers are rolling out new features.
However, as one of the top AI tokens, a decrease in this metric signals a bearish sentiment for the price. As of the time of writing, this metric has decreased significantly from its previous high.
If this trend continues, NEAR’s price may fall below $5 in the short term. Additionally, the weighted sentiment around the token is negative, indicating more negative comments than positive ones.
If this situation persists, the demand for NEAR may be difficult to achieve. Consequently, the price may decline. However, this prediction will become invalid if significant developments in the AI field occur or buying pressure increases.
Fetch.ai Network Activity Surges
FET has now become part of the Artificial Superintelligence [ASI] Alliance and is one of the AI tokens that reached a historical high in 2024. Specifically, FET touched $3.47 on March 28th this year.
Although the hype around FET has subsided compared to other AI tokens, this has affected the token’s value. As of the time of writing, FET’s trading price is $1.24, a 29.76% decrease in the past 7 days.
However, the price of future cryptocurrencies may rise again. AMBCrypto discovered evidence of this potential after examining Fetch.ai’s network activity. According to IntoTheBlock, FET’s new addresses, active addresses, and zero balance addresses have been increasing in the past few days.
Such growth indicates a healthy development of the network and a healthy adoption rate. If the number of addresses continues to increase, FET’s price may also increase as it is a sign of token demand.
If this continues, FET may not fall below $1. Instead, this cryptocurrency may start approaching $2 in the coming weeks.
Is it Time to Buy Render [RNDR]?
RNDR is one of the breakout stars of this cycle. As a GPU rendering network built on the Ethereum blockchain, the positive developments driven by the booming GPU market have pushed RNDR’s price up.
Like FET, RNDR reached a historical high in March. However, since then, the price has dropped from $13.60 to $7.08 – almost halving. Meanwhile, AMBCrypto examined whether the decline provides a buying opportunity.
To do this, we studied the price-DAA difference. DAA represents daily active addresses, which measure user activity on the blockchain. Overall, the price-DAA difference compares how fast the token’s value is growing compared to network activity.
If the reading is positive, it indicates that the price is growing faster than the activity. When this happens and the reading is extremely high, it is a sell signal.
In this case, as of the time of writing, the price-DAA is -606.44%. This means that the participation rate on the Render network is higher than the price growth level. In short, a negative reading suggests that RNDR may provide a long-unseen buying signal.
