With a large number of daily active users, a growing trend of accumulation, and skyrocketing prices, one AI coin is clearly ahead of the rest. AI-focused cryptocurrencies have emerged as a promising sector in the crypto ecosystem, leveraging tools like ChatGPT, Fireflies, Midjourney, SaneBox, and others to automate daily tasks and foster innovation in workplaces. Given the relatively new nature of AI in the crypto sector, investors and experts are eager to discover the next valuable asset in this field.
AI Coins
According to data from CoinMarketCap, the top five cryptocurrencies in the AI sector have a combined market value of $21.2 billion, which is quite impressive. It’s worth noting that the market value of the popular meme coin Dogecoin currently stands at approximately $22.18 billion. To stay up-to-date with the latest technology news, visit NEWSLINKER.
[image placeholder]
To gauge sentiment and user engagement, we have analyzed the on-chain metrics of three of the top five AI cryptocurrencies: Render (RNDR), The Graph (GRT), and Injective (INJ). The key question is: which of these AI coins holds the most promising long-term growth potential?
Introduction to the Trio: RNDR, GRT, and INJ
In the past seven days, the crypto market has witnessed notable movements. While Bitcoin saw an 8.9% increase, RNDR experienced a 4.9% decline, whereas GRT and INJ saw rises of 13.9% and 18.1% respectively. This indicates that altcoins often have the potential to yield higher returns than Bitcoin when they perform well in the market.
However, this overall picture doesn’t fully capture the single-day price trends of the tokens. Technical analysis reveals that INJ, in particular, has performed poorly. Both INJ and GRT exhibit clear downward trends in their daily charts, suggesting a short-term bearish trend.
On the other hand, RNDR has established a short-term range below the $11.3 resistance level, indicating limited price movements below a certain resistance level.
Purpose of the Tokens
Understanding the purpose of these tokens is also crucial. Render Network is a peer-to-peer (P2P) platform that utilizes blockchain technology to distribute GPU processing power. Its objective is to democratize the GPU cloud and enhance its efficiency and scalability.
The Graph is an indexing protocol that provides developers with access to the necessary data for building decentralized applications. It also aims to reduce developers’ costs and improve server uptime.
Injective, on the other hand, serves as a decentralized exchange that enables cross-margin trading, futures, and forex transactions. Built as a Layer-2 application, it utilizes cross-chain bridges to grant investors access to assets across different networks.
On-Chain Metrics Reflect Price Trends to Some Extent
Over the past three weeks, RNDR has witnessed an increase in daily active addresses, but development activity has remained low. This is a concerning development for RNDR, unlike Cardano. Weighted sentiment has remained negative, and the rising trend in the age of the cryptocurrency indicates accumulation in the market.
[image placeholder]
On the other hand, GRT has experienced a decline in daily active addresses but has maintained reasonable development activity. Although weighted sentiment has been negative, it has shown signs of recovery in recent weeks. The increasing age of the cryptocurrency and the positive MVRV ratio provide positive signals for accumulators and short-term investors.
[image placeholder]
Injective, however, has shown a sharper downward trend compared to the others, with a decline in active users and low development activity. Weighted sentiment remains negative, and the average coin age is also on a downward trend, increasing selling pressure.
[image placeholder]
With its high number of daily active users, accumulation trends, and rising prices, RNDR may outperform the other two coins in the upcoming weeks.
You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap.
Disclaimer: The information provided in this article does not constitute investment advice. Investors should be aware that cryptocurrencies are highly volatile and carry risks, and they should conduct their own research.
