Is AI igniting a rally?

AI and big data crypto projects and tokens are suffering losses, reflecting a market that lacks a clear direction. As a result, the broader altcoin sector is in turmoil as traders eagerly await signals from Bitcoin.

New analysis suggests the dominance of the world’s largest cryptocurrency is on the rise, curbing altcoin gains. A decrease in their dominance can be a great relief for the highs.

Altcoin Rally Ahead?

The founders of Glassnode ‘Negentropic’ observed that Bitcoin’s dominance in the market is currently increasing, which has been wiping out the gains of altcoins.

However, a possible decline in Bitcoin’s dominance could trigger significant concentrations among altcoins. In particular, POWR, FTT and NMR have emerged as the best performers among the batch. Bitcoin’s recent rise from a horizontal support level has further added momentum to the market.

“Will AI Boost Super AI Altcoins? BTC Dominance Is On The Rise, Suppressing Altcoin Gains. A Declining BTC Dominance Could Ignite Major Altcoin Rallies.”

Looking ahead, AI altcoins are expected to be in the spotlight over the next month, driven by key events such as NVIDIA’s earnings report on May 22, Apple’s WWDC on May 10 June, the potential release of ChatGPT 5, the appearance of a GPT based on GPT. search engine and the Google I/O event, which just took place.

These catalysts could significantly influence market sentiment and drive interest and investment in AI-focused cryptocurrencies.

At its annual I/O developer conference earlier this week, Google launched Project Astra, which is capable of providing real-time responses to user queries via text, audio or video input. With this, the tech giant’s move aims to consolidate its dominance over the recent rise of generative AI technologies.

Despite Google’s new introduction, AI tokens have failed to rally. Data compiled by CoinGecko shows the lackluster performance of major AI tokens throughout the week, with only a handful of them in the green.

Venture Capital Investments in Artificial Intelligence (AI)

Web3 and artificial intelligence (AI) became the leading areas of investment in blockchain startups in 2023, securing more than 11% of the sector’s total venture capital funding.

This is evident in Stan Miroshnik’s report at TenSquared (10SQ), which revealed that venture capital investments in Web3 and AI startups topped $637 million last year.

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