It’s been a wild day for cryptocurrency investors, with a number of top tokens seeing outsized volatility during today’s session. For AI cryptos, these moves are even more exaggerated.
From 2:15 PM ET on Monday, The graph (CRYPTO: GRT), Collect.ai (CRYPTO: FET)And SingularityNET (CRYPTO:AGIX) are still up significantly, up 5.6%, 2% and 1.8% respectively in the last 24 hours. However, many of these tokens have continued to fall in afternoon trading, along with other risky assets, as tensions rise in the Middle East.
For AI cryptos, geopolitical concerns should not matter to the same extent as for other assets that are more sensitive to capital flows. That said, capital flows do matter no matter what niche a particular project pursues, and selling pressure remains intense today.
What’s Driving These AI Cryptos Higher Today?
Fetch.ai and SingularityNET are two projects uniquely focused on AI that have a shared catalyst that investors are clearly taking into account. Fetch.ai has partnered with SingularityNET and Ocean Protocol to create what they call the “Superintelligence Alliance.”
As part of this alliance, there have been some discussions about a possible token merger, with investors now pricing these tokens in high correlation with each other.
That certainly makes sense, given the AI focus of both projects and their collaborative ties to work together to solve much bigger problems than they could likely do alone. One thing that certainly strikes me about crypto assets is the relative lack of willingness to merge projects. If these projects take the plunge at some point, it will be interesting to see how the market values a token combination.
Demand for blockchain-based AI solutions appears to be high, and a combination of these two relatively small projects could increase their chances of success in creating meaningful utility for end users.
The Graph’s core model as an oracle network, allowing off-blockchain data to be transferred on-chain, has seen impressive demand growth over time. A number of recent collaborations and partnerships have created an impressive amount of momentum in this sign over the past week. The fact that this momentum has continued is a very positive development for long-term investors and suggests that this AI-related play could gain more space.
Are these three tokens worth buying during dips?
Today’s price action certainly implies that there could be a dip on the horizon, or at least a softening of some fairly strong momentum in these tokens over the past few days. No rally lasts forever, and a breather could prove to be a good thing. This year, these three AI-related cryptos were among the top performers, and I wouldn’t be surprised if that story continues through the end of the year.
For growth investors looking for some exposure to cryptocurrencies (and especially projects with AI-related headwinds), these are three tokens I think are worth adding to the watchlist to potentially buy during dips . Each project has unique catalysts that can generate value for investors and users over time. That’s what this space should be about, and that’s what makes rating these cryptos so compelling.
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Chris MacDonald has no positions in any of the stocks mentioned. The Motley Fool holds and recommends positions in Fetch and The Graph. The Motley Fool has a disclosure policy.
These 3 Artificial Intelligence (AI) Cryptos Are Skyrocketing Today and were originally published by The Motley Fool
