ChatGPT launch in November 2022 played a critical role in the Crypto AI tokens’ rise to prominence in early 2023. However, on-chain data shows that the leading AI tokens have been losing momentum in H2 2023.
Investors are Looking Away from the Artificial Intelligence-Related Tokens
Following the launch of the AI chatbot, ChatGPT in November 2022, Crypto AI tokens started 2023 with a bang. By February, Singularity (AGIX), Render (RNDR), and The Graph (GRT) had delivered triple-digit gains.
However, a recent report by Kaiko shows that crypto investors are turning their attention away from AI tokens. The chart below illustrates that the Weekly Transaction Volumes of the leading AI tokens have been dwindling gradually since they peaked around February.
After a brief resurgence in March 2023, the AI tokens have failed to maintain the momentum in H2 2023.
AI Tokens Losing Momentum | Weekly Transaction Volume, Source: Kaiko
The Trade Volume data analyses the number of tokens transacted by investors over a given period. When it starts to drop persistently over an extended period, it signifies that crypto investors are losing interest in the core products and services offered by the blockchain network.
Notably, there has been a close correlation in the transactional activity of all the 6 AI tokens identified above. This suggests that the crypto AI sector is becoming unattractive to investors.
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What is Worldcoin (WLD)?
On June 24, Worldcoin launched out of beta, to a mix of global media fanfare and skepticism from blockchain experts led by Vitalik Buterin.
As described in its official whitepaper, Worldcoin is an AI-based cryptocurrency project, founded with the mission of “creating a globally-inclusive identity and financial network”.
Worldcoin revolves around a privacy-preserving global identity network called World ID. The World ID system essentially enables users to distinguish between humans and AI (“Proof of Personhood”) while maintaining their privacy through zero-knowledge proofs.
Can Worldcoin (WLD) Rescue the Crypto AI Sector?
The crypto AI space hit the media spotlight again this week following the launch of Worldcoin (WLD) by ChatGPT founder Sam Altman.
Optimistic investors remain hopeful that Worldcoin could reignite investors in the crypto AI sector. However, WLD Transaction Volume trends in its first few days post-launch have been quite underwhelming.
AI Tokens Losing Momentum | Worldcoin (WLD) Transaction Volume, Source: Santiment
The Santiment chart above shows that Worldcoin Trades Volume has been in a steep decline since it launched on June 24. As of June 27, WLD Transaction Volume has already dropped by 40% from 12.34 million to 8.83 million tokens transacted.
While WLD price has held firm above the $2 support level, signs of a potential triple-digit rally have not yet emerged.
In conclusion, it is still too soon to tell if Worldcoin can rekindle crypto investors’ interest in the AI sector. Negative media sentiment surrounding Iris scanning and personal data management appears to dominate the headlines.
If the early on-chain signals are to go by, it is unlikely that Worldcoin will move the needle for another wave of triple-digit Crypto AI token price pumps in H2 2023.
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