In a bright and shiny rebound within the cryptocurrency sector, digital currencies associated with artificial intelligence (AI) and the internet of things (IoT), such as Fetch.ai and Internet Computer, have witnessed exceptional gains. This surge comes as the entire crypto market experiences a notable revival.
Bitcoin has recently breached the critical $70,000 threshold, peaking at $71,500 before settling back to $69.5K. This uptick is part of a broader expansion where the total value of the cryptocurrency market escalated from $2.6 trillion to $2.64 trillion within a 24-hour frame, with trading volumes jumping by 30% from $90 billion to $117 billion, based on data from Coinmarketcap.
Let’s take a closer look at the new and not so new AI and IOT tokens and see what is really going on in the field. Is this subsection of tokens set for a meme coin line rise, or is it a one day wonder?
AI tokens and the Internet of Things
Leading the charge in this burgeoning rally are the cryptocurrencies rooted in IoT, buoyed not merely by their market performance but also by pivotal announcements that have captivated investor interest. Notably, IOTA and Jasmycoin have emerged as front runners, propelled by significant developments.
At the Investopia 2024 event in Abu Dhabi, the IOTA Foundation, responsible for the pioneering IoT cryptocurrency IOTA, unveiled a new $10 million venture capital fund. This initiative is designed to foster TradeTech innovations and bolster startup growth within the ecosystem. Following this announcement, IOTA's price soared by 7% on Gate.io, touching a zenith of $0.373 before mirroring Bitcoin's slight downturn. Currently, IOTA boasts a 7% increase over the past day, 23% over the past week, and an impressive 30% growth over the past month.
Similarly, JasmyCoin, the digital currency of Jasmy Corporation based in Tokyo, experienced a 7% increase in its value. The spotlight turned to JasmyCoin, particularly after it garnered attention during the 2024 market upswing. A noteworthy development for JasmyCoin was the recent partnership announced by Hiroshi Harada, CFO of Jasmy Labs, with Panasonic. This collaboration aims to develop an IoT platform that integrates a personal data locker with a decentralized database, enabling secure individual device information sharing. Following this announcement, JasmyCoin's price climbed from $0.02 to $0.023, peaking at $0.024, before experiencing a correction alongside Bitcoin. Presently, JasmyCoin has ascended by 7% in the last 24 hours, 36.4% over the week, and 42% over the past month.
While AI-related cryptocurrencies have also seen robust performance, their upward trajectory appears more influenced by overall market trends rather than specific announcements or underlying fundamentals.
Fetch.AI's token, FET, recognized for its vision of a "permissionless network for secure dataset access through autonomous AI," witnessed an 11.6% increase from a price of $2.6 to $2.9 per FET. Unlike others, FET's value remained unaffected by Bitcoin's adjustment, marking a 21.8% increase over the week and a staggering 174.88% surge over the past month.
Fetch.AI is experiencing a notable uptick, propelled by the burgeoning interest in AI enterprises and the broader cryptocurrency market's dynamics.
The FED token of Fetch.AI has been ascending above its EMA10 (a metric that averages the price movements over the past 10 days), showcasing a degree of stability amidst the fluctuations typically associated with Bitcoin's price changes. Despite this, the token has entered a period of lateral movement in the past two weeks, signaling a potential waning in its upward trajectory. This moderation follows a phase of being significantly undersold from mid-February to mid-March, suggesting a normalization phase beneficial for market health. The Average Directional Index (ADX), a tool for gauging the momentum of a trend, remains robust at 43, while the Relative Strength Index (RSI) at 65 indicates a predominance of buying over selling activity amid market uncertainties and fluctuations.
On another note, the ICP token, although not directly an AI-centric cryptocurrency, has garnered attention for its affiliation with AI through pioneering blockchain-based AI smart contracts. This token has seen impressive growth, with a 14.5% increase in the last 24 hours, a 75% rise over the past week, and a 60% uplift in the last month.
ICP's resurgence is particularly noteworthy, recovering from a steep decline in early March when it plummeted from $16 to $11 within a fortnight. Since that downturn, the token has been on a recovery path, currently priced at $20 per ICP after opening the day at $17.35.
Investor sentiment around ICP is overwhelmingly positive, though caution is advised for those considering entering the market. The token's RSI indicates it is highly oversold at 77, and the recent appearance of large-bodied candlesticks with minimal wicks suggests a possible correction. Even a near 20% retraction to align closer to its EMA10, after such a swift 75% rise in a single week, would not necessarily signal a drastic reversal but rather a healthy market adjustment.
Final words
The recent surges, underscored by significant partnerships and venture capital inflows, suggest a growing interest in the practical applications and future potentials of AI and IoT within the crypto domain.
This movement is not just a show to a new wave that drives the market but also a reflection of the broader investor enthusiasm that seems to be looking beyond mere speculation, eyeing the tangible impacts of these technologies on the digital economy. Whether this trend marks the beginning of a sustained ascent or a temporary spike, it underlines the crypto market's dynamic nature and its sensitivity to technological milestones.
