Crypto is down, but FET and AI tokens are up – here’s why.

Price divergence has been short-lived in the crypto market recently, the most recent case being Bitcoin's (BTC) short rally to $65,000 on August 24.

According to the data from Glassnode, traders are more risk averse and careful to use it to chase big profits in the crypto market. On August 27, in the weekly Onchain newspaper, the analysts explained that the “event” or the reduction in the demand for speculation and leverage is “reflected by the current level of neutral funding” which has recently been in the driver's seat.

Although Bitcoin posted its biggest gains to trade below $59,000 on August 27th, Fetch.ai's FET token has been a standout over the past 7 days. Since August 5th – the day BTC price dropped to $49,500 – Artificial Super Intelligence Alliance, FET has increased 80%.

Let's take a quick look at some of the factors that drive FET performance.

Altcoins benefit from AI narrative

Artificial intelligence-related tokens are expected to outperform in 2024 due to the advent of various AI tools and the historical performance of Nvidia's stock. A positive performance in Nvidia stocks was followed by strong rallies in AI tokens, including FET. The token also comes as Nvidia releases positive earnings reports and the chipmaker is scheduled to report its quarterly results this week on August 28.

The price of FET has increased more than 500% and more than 90% in the last 12 months. Agents (or programmatically controlled digital avatars) are one of Fetch.ai's main use cases. Through the AgentVerse platform, autonomous agents can be tasked with searching, connecting and transacting on behalf of users and businesses in marketplaces.

AgentVerse is essentially a Software as a Service (SaaS) platform. Ideally, the Fetch.ai team hopes to use its AI agents to redefine monetization strategy and execute user requests such as hotel and flight bookings, along with managing electric vehicle charging infrastructure.

Related: Grayscale Launches New Decentralized AI Fund

On June 13, Fetch.ai, Ocean Protocol, and SingularityNET merged to form the Artificial Superintelligence Alliance (ASI), with the goal of combining the AI ​​features of each protocol to create a vertically integrated technology stack. Tokens from OCEAN and AGIX are in the process of being converted to FET. As news of the merger broke, FET prices rose to a record high of $3.48.

In the months following the merger, FET's price fell along with the broader altcoin market, hitting a low of $0.70 on August 5.

Historically, the crypto market has been riddled with narrative-driven false cycles, and while it may be an unpopular opinion, the AI ​​sector can be flooded with many similar solutions that don't match consumer needs or have the right product type. – Marketable.

In the short term, AI Token investors will be closely watching Nvidia's earnings report scheduled for release on Wednesday, August 28th.

This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.