AI Tokens Outperform as Crypto Markets Consolidate

RNDR, TAO and FET have posted double-digit percentage gains in the past week.

By: Mehab Qureshi Loading...

upward-trending arrows and rising bar graphs, glowing in neon colors against a dark background

Most digital assets are trading sideways on Tuesday, in line with global markets.

Bitcoin, the world’s largest cryptocurrency, is trading at $63,600 — roughly flat over the last 24 hours. Ether (ETH) is down 0.3%, with Dogecoin (DOGE) dipping 0.5%. Meanwhile, Solana (SOL) is up nearly 2% on the day.

Artificial intelligence (AI) tokens have bounced back strongly, with Render Network (RNDR) soaring 40% in the last seven days. Other AI coins, like SingularityNET's AGIX, Bittensor's TAO, and's FET, have rallied between 17% and 23%, outperforming the overall market.

AI Tokens chart
AI Tokens

Crypto hedge fund QCP Capital noted renewed demand for September Bitcoin call options at strike prices of $75,000 and $100,000. "We are seeing some bullish follow-through in volatility and [funding] rates following the reversal bounce from Friday and into the weekend," the firm said in a note seen by The Defiant.

SEC delays spot Ethereum ETF

The SEC's decision to delay the spot Ethereum ETFs proposed by Invesco and Galaxy Digital may have caused the overnight dip in Ether.

The review period for the ETF has been extended until July 2024, as the SEC seeks additional public commentary and reviews regulatory considerations before it can be listed for trading on the Cboe BZX Exchange.

The SEC has been actively investigating Ethereum's status following its transition from a proof-of-work (PoW) to a proof-of-stake (PoS) consensus mechanism. SEC Chair Gary Gensler has suggested that cryptocurrencies allowing staking may meet the criteria of the Howey test, which determines if an asset constitutes a security.

Stock markets consolidate

On Tuesday, U.S. stock futures hovered near the flatline as the Dow Jones Industrial Average aimed to extend its streak of four consecutive positive days.

The Dow futures have risen nearly 0.1%, while the S&P 500 futures are holding just above flat. At the same time, Nasdaq 100 futures have slipped by 0.1%.

Friday’s U.S. payrolls data revealed lower-than-expected job growth in April and a slight increase in unemployment. These results have eased worries about an overheated economy and boosted investors’ hopes for rate cuts from the Federal Reserve.