AI crypto tokens are sliding, and AI market leader Fetch.ai (FET) could register losses during a big token unlock – what does this mean for AI coins?
Crypto AI tokens had a superb Q1 2024. And that was then. As of November 28, their market cap stood at over $36.8 billion, down nearly 7.3% in the past 24 hours.
At this valuation, NEAR Protocol is the largest by market cap. However, Artificial Superintelligence Alliance (FET), a merger of three firms, including Fetch.ai and SingularityNET, leads to a review of its performance over the last trading week.
FET Leads AI Crypto Tokens
FET
Artificial Superintelligence Alliance
3.15%
Artificial Superintelligence Alliance
FET
Price
$0.1887
3.15% /24h
Volume in 24h
$45.36M
Price 7d
is up 20%, pushing its market cap to over $3.8 billion, outperforming Render (RNDR), Bittensor (TAO), and NEAR.
(Source)
Whether FET will rally and align with impressive gains early this year remains to be seen.
From the FETUSDT daily chart, the uptrend has been labored. Specifically, FET is trading below September highs of around $1.7 and stuck inside a consolidation in November.
The local support is $1.1, printed earlier this month.
If the crypto market recovers after the correction this week, FET bulls may ride the tide.
(FETUSDT)
However, if Bitcoin and top altcoins reverse gains as bears build on from Monday and Tuesday losses, FET may drop below $1.1 in the short term.
The dump could be particularly hard now that the team is releasing more FET into circulation.
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1.03 Million FET Unlocked: What Does it Mean For Price?
Earlier today, 1.03 million FET worth over $1.52 were released as part of the team’s scheduled linear unlock.
The unlocking today precedes another set for December 28, looking at Tokenomist data.
(Source)
In both cases, there will be more FET hitting the secondary market.
Usually, when more tokens enter circulation, they dilute the existing supply. Since market forces of supply and demand shape prices, valuation might dip, especially if demand fails to keep pace.
The demand for FET is slowing down as attention shifts from crypto AI tokens to meme coins.
The merger of SingularityNET, Fetch.ai, and Ocean Protocol, looking at price action over the last six months, appears not to help.
FET remains flat and struggling against the wave of selling pressure seen in the last week of November.
Never before in history have three blockchain projects merged in this way.$FET, $AGIX and $OCEAN are making history, combining to form one universal #AItoken known as Artificial Superintelligence $ASI 🧠
Join us on this journey 🚀 pic.twitter.com/FOOXSRYbTN
— Fetch.ai (@Fetch_ai) March 28, 2024
While the first phase of the transition is complete, the transition of FET to ASI remains.
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