In the current state of the cryptocurrency market, crypto projects and tokens based on artificial intelligence and big data technology are experiencing financial difficulties. This reflects the overall uncertainty in the market, where a wide range of altcoins remain in limbo, awaiting further actions from Bitcoin.
According to recent analysis, the increasing dominance of Bitcoin suppresses the profit potential of altcoins, and any decrease in this dominance could significantly ease the situation for altcoins. Tokens such as POWR, FTT, and NMR stand out from the rest due to their leadership.
The founders of Glassnode's 'Negentropic' pointed to the current growth in Bitcoin dominance, which suppresses the growth of altcoins:
"Will AI enhance the growth of AI altcoins? BTC dominance is rising, suppressing altcoin profits. A decrease in BTC dominance could trigger a significant altcoin rally."
Significant events are expected to impact AI altcoins, including NVIDIA's earnings report on May 22, Apple's WWDC on June 10, the anticipated launch of ChatGPT 5, a new GPT-based search engine, and Google's recent data input-output event.
These events are likely to influence market sentiments and may increase interest and investments in AI-based cryptocurrencies. At its annual developer conference, Google introduced Project Astra, which provides real-time answers to user queries using text, audio, or video inputs, further strengthening the company's position in the AI market.
Despite innovations from Google, the performance of major AI tokens remains low over the past week, according to CoinGecko data, with only a few showing profit.
Web3 and AI have become leading areas for blockchain startup investments in 2023, accounting for over 11% of total venture funding. As Stan Miroshnik's report from TenSquared shows, venture capital investments in Web3 and AI startups reached $637 million last year.
