It’s been a wild day for cryptocurrency investors, with a number of top tokens seeing outsize volatility in today’s session. For AI cryptos, these moves have been even more exaggerated.
As of 2:15 p.m. ET on Monday, The Graph (CRYPTO: GRT), Fetch.ai (CRYPTO: FET), and SingularityNET (CRYPTO:AGIX) are still up meaningfully, surging 5.6%, 2%, and 1.8%, respectively, over the past 24 hours. However, many of these tokens have continued to decline in afternoon trading alongside other risk assets, as Middle East tensions rise.
For AI cryptos, geopolitical concerns shouldn’t matter to the same degree as with other assets that are more sensitive to capital flows. That said, capital flows do matter regardless of which niche a given project is pursuing, and selling pressure remains strong 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 pricing in. Fetch.ai is collaborating with SingularityNET and Ocean Protocol to create what they’re calling the “Superintelligence Alliance.”
As part of this alliance, some talks around a potential token merger have taken place, with investors now pricing these tokens in high correlation to each other.
That certainly makes sense, given the AI focus of both projects, and their collaborative ties to work together on solving much bigger problems than they likely could on their own. One thing that certainly stands out to me about crypto assets is the relative lack of willingness for projects to merge. If these projects do tie the knot at some point, it will be interesting to see how the market values a token combination.
The demand for blockchain-based AI solutions appears to be strong, and a combination of these two relatively small-cap projects could improve 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 ported on-chain, has seen impressive demand build over time. A number of recent collaborations and partnerships have driven an impressive amount of momentum in this token over the past week. The fact that this momentum has continued is a very positive development for long-term investors, and suggests this AI-related play could have more room to run.
Are these three tokens worth buying on dips?
Today’s price action certainly implies a dip could be on the horizon, or at least a mellowing out of some rather strong momentum in these tokens in recent days. No rally lasts forever, and a breather can turn out to be a good thing. This year, these three AI-related cryptos have been among the best performers, and I wouldn’t be surprised to see that narrative carried through to the end of the year.
For growth investors seeking some crypto exposure, (and in particular, projects with AI-related headwinds), these are three tokens that I think are worth adding to the watch list to potentially buy on dips. Each project has unique catalysts that could drive value for investors and users over time. That’s what this space is supposed to be about, which is what makes assessing these cryptos so compelling.
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Chris MacDonald has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Fetch and The Graph. The Motley Fool has a disclosure policy.
These 3 Artificial Intelligence (AI) Cryptos Are Rocketing Higher Today was originally published by The Motley Fool