#AI Tokens Cool Down#
Hot Topic Overview
Overview
While Nvidia's recent conference sparked optimism for AI stocks in traditional markets, AI tokens have failed to replicate their epic 2024 surge. Unlike last year when AI tokens saw widespread gains ahead of Nvidia's conference, this year AI tokens have performed poorly, with NEAR and FET dropping 8% and 9% respectively in the past 24 hours. This is primarily due to investors favoring AI agent tokens, which offer higher volatility and potential gains, while interest in general AI tokens has waned. Additionally, the crypto market is volatile to speculative industry shifts, as was the case with the AI token rally last year. While mainstream use cases for crypto AI projects remain scarce, AI tokens are still in their nascent stages, and Nvidia's upcoming mini-supercomputer Digits could potentially bring new opportunities to the space.
Ace Hot Topic Analysis
Analysis
While Nvidia's recent conference sparked bullish sentiment for AI stocks in traditional markets, artificial intelligence (AI) crypto tokens have failed to replicate their epic 2024 surge. Unlike last year when NEAR token doubled ahead of Nvidia's annual conference in March, driving the entire crypto AI market higher, AI tokens have shown vulnerability this year. NEAR has dropped over 8% in the past 24 hours, while FET has fallen nearly 9%. This stands in stark contrast to Nvidia's stock price, which rose 15% to $153 at the start of the conference, compared to its $133 price at the beginning of the year.There are two main reasons for the AI token chill: the emergence of AI agent tokens, which have volatility and hype similar to memecoins, attracting investors seeking high returns, while regular AI tokens, due to their larger market capitalization, struggle to achieve significant growth. Second, a lack of interest, as Google search trends show a 47% and 84% decline in searches for "NEAR token" and "Fetch.ai" respectively since March.While last year's rally stemmed from speculative investment in AI tokens, there are few mainstream crypto AI projects in actual use, with many products still under development. AI tokens are still in their infancy, and their future development remains to be seen.