Finance

Why did Fetch and SingularityNET AI-tokens just surge 30%?

The Fetch and SingularityNET artificial intelligence (AI) cryptocurrencies both rallied over 30% today, recovering after a three-month downtrend. What is behind the rally of the AI coins?

Why are FET and AGIX up over 30%?

The Fetch.ai (FET) token rallied 37% while the SingularityNET (AGIX) token rose over 33% during the past 24 hours, according to TradingView data.

FET & AGIX, 24-hour chart. Source: TradingView

The two AI-based cryptocurrencies started their price recovery on June 19. Both coins have been in a downtrend since the end of March.

Over the past three months, FET fell over 31% while the AGIX token’s price lost over 36%.

FET & AGIX, 3-month chart. Source: TradingView

Today’s price rally was catalyzed by the upcoming merger between SingulairtyNET, Fetch.ai, and Ocean Protocol, according to Vlad Balaban, the co-founder of GT Protocol, a blockchain-based AI execution protocol. He wrote:

“The surge of over 30% is attributed to their announced merger with Ocean Protocol, aimed at forming the largest decentralized AI ecosystem. This strategic move has ignited investor enthusiasm, anticipating significant advancements and market leadership in AI technology.”

In a June 20 X post, SingularityNET announced the official date for the Artificial Superintelligence Alliance (ASI) token merger for July 1.

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FET, AGIX are up on AI and Nvidia developments: Nansen analyst

The AI sector has attracted significant attention lately. Nvidia became the world’s most valuable publicly traded company on June 18 after the graphics processing and AI chip giant’s market cap rose to $3.34 trillion.

The developments around Nvidia and the AI sector have contributed to the FET and AGIX tokens’ rally, according to Edward Wilson, an analyst at Nansen.ai. He told Cointelegraph:

“AI as a sector is hot in both traditional markets and crypto. It should come as no surprise that on the back of Nvidia becoming the world’s most valuable company, AI tokens like NEAR, RNDR, and others are rallying.”

Nansen’s Wilson also noted that investor interest in AI remains high:

“Both of these tokens are up around 300% in the past year, compared to ETH at just over 100% during the same period, showing high market interest in this sector.”

On the yearly chart, FET is up over 750% while the AGIX token is up 192%.

FET & AGIX, 1-year chart. Source: TradingView

Part of the growing investor and institutional AI interest is dedicated to the emerging possibility of artificial general intelligence (AGI), according to GT Protocol’s Balaban:

“Companies are jumping into the AI race, and those who come out on top will not only capture the largest market share but lead the world. This competition significantly boost interest from investors and VCs, as an AI race promises substantial profits for those who make the right investment decisions for their portfolios.”

Related: XRP price could break out as open interest increases

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