AI-related cryptos are seeing a surge of interest in today’s session as buying activity heats up.
It’s a sea of green in the cryptocurrency world today, with a number of top cryptos once again leading the way higher. But one group that’s getting outsized attention once again in today’s session are various AI-related tokens, which are seeing outsized moves relative to the most-followed megacap cryptos.
I’m talking about Fantom (FTM 4.71%), The Graph (GRT 7.30%) and Stacks (STX 6.24%), which have surged 8.9%, 9.8% and 6.8%, respectively, over the past 24 hours as of 2 p.m. ET. These moves are considerable, taking into account that the overall move higher in the crypto sector today is around 5.3%.
Let’s dive into why there’s so much buzz around these particular projects right now.
AI hype continues to drive specific projects higher
Fantom’s recent surge has been impressive, both today and in recent weeks. Over the past month, Fantom’s native FTM token is up roughly 55%, as investors continue to pile into this project ahead of its upcoming Sonic upgrade, which will help the blockchain reportedly handle up to 2,000 transactions per second. Such transaction speeds should assist developers on this network to add various high-performance AI applications, something investors hope will generate increased value over time.
The Graph’s status as a leading-oracle network, allowing off-chain data to be ported to blockchain networks is generating growing interest in this project, specifically with respect to the growing data needs of developers looking to build AI applications on-chain. So long as longer-term trends in AI development continue at their current pace (or accelerate), this is a project that could continue to see surging interest on risk-on days like today.
Stacks is an intriguing crypto project in that it’s among the few blockchain networks that have been approved by the Securities and Exchange Commission (SEC) as a Bitcoin (BTC 2.16%) layer enabling smart contracts. So, for investors who believe in AI applications eventually existing on the Bitcoin blockchain, this is a project to watch on this basis alone. That’s on top of the other key catalysts supporting Stacks’ price performance in recent months, including the approval of spot Bitcoin ETFs and the network’s own Nakamoto Upgrade, which went live earlier this year.
Can this hype continue?
It’s worth noting that while some AI-related activity has started to happen on-chain, we’re still a ways away from seeing the sort of blockchain-based AI future many have expected to see materialize this year. Of course, developers appear to be devoting more resources this way, and if there are material improvements on the blockchain, these are three projects that could disproportionately benefit from such activity.
For the time being, I think investors are right to try to pinpoint which crypto projects may be the best beneficiaries to ride higher during this AI-driven bull market in risk assets. It remains to be seen if development ultimately lives up to the hype. But for now, inverts appear to be more concerned about missing out on this upswing than fearing a downturn, and momentum is a serious thing in the crypto market.
Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Bitcoin and The Graph. The Motley Fool has a disclosure policy.
