Can AI Crypto Narrative Lead The Upcoming Bull Market?

Artificial Intelligence (AI) crypto is one of the smart money’s favorite narratives. What are the top three AI cryptocurrencies for 2024?

Up until last year, AI-focused crypto wasn’t much talked about. But in 2023, AI stole the limelight, especially with the advent of generative AI chatbots such as OpenAI’s ChatGPT and Google’s Bard.

That being said, smart money and retail investors are constantly hunting for AI crypto gems. Does it have the potential to lead the upcoming bull market rally?

Why Smart Money Are Accumulating Autonolas (OLAS)

As AI stocks gave multi-bagger returns in 2023, there is an expectation that AI crypto will also outperform in the upcoming bull market. Crypto pioneers such as Arthur Hayes believe that decentralization is necessary for artificial intelligence to thrive.

Nansen analyst Sandra Leow shared her insights regarding the potential of AI and blockchain with BeInCrypto:

“Both AI and crypto are quickly maturing. While the potential of AI and blockchain integration remains largely uncertain today, the emerging use-cases and possibility enabled by both technologies is massive.”

Read more: How Will Artificial Intelligence (AI) Transform Crypto?

She cited the example of the Autonolas network, which focuses on services such as automation, oracles, and co-owned AI. It has developed AI agents for predictions, AI-enabled governance, and other services. Leow explained AI agents:

“AI agents can help process transactions, hold things of value, and exchange value on behalf of users. We could foresee a world where AI agents become a primary category of users on the blockchain.”

OLAS is the utility token of the Autonolas network. Nansen analysts have witnessed a significant increase in the smart money holding of OLAS.

Nansen analyst Martin Lee told BeInCrypto:

“For OLAS, we’ve seen a consistent increase in smart money holdings over time. With 14 smart money holders and 939,000 tokens held on November 1, 2023, to 35 smart money holders and 1.87 million tokens today.”

Smart money is a popular crypto slang, referring to whale wallets, and institutional investors’ wallets. Generally, smart money has exposure to various information before retail investors. Moreover, they are well-equipped with advanced trading strategies and other resources.

Hence, tracking smart money activities can give an edge to an investor, helping them catch the trend early.

Read more: A Comprehensive Guide on Tracking Smart Money in the Crypto Market

Low Market Capitalization Invites Extreme Volatility

While OLAS is being accumulated by smart money, it has a micro-market capitalization of just $250 million, ranking 2300th on the list of cryptocurrencies with the highest market capitalization.

Whales can easily manipulate the price of the tokens with low market capitalization. Hence, they are highly volatile. Some low-market capitalization projects also involve the risk of rug-pull.

Moreover, due to the risks with low-cap projects, not many centralized exchanges have listed OLAS. The screenshot below from CoinMarketCap shows only two centralized exchanges facilitate the trading of OLAS.

Not to mention, the CoinMarketCap website hasn’t verified the market capitalization of OLAS yet. The market capitalization mentioned on the website is self-reported by the project.

Read more: What Is a Rug Pull? A Guide to the Web3 Scam

Fetch.AI (FET) Surges by Over 300% in 4 Months

According to Nansen analysts, along with Autonolas, another Artificial Intelligence project that is increasingly becoming the favorite of smart money is – Fetch.AI (FET). The project focuses on building a machine-learning ecosystem, with FET tokens as an incentive to use and offer services. 

Like Autonolas, Fetch.AI also provides AI agents. The AI agents help users find and book services that match their needs.

According to BeInCrypto data, FET has a market capitalization of $762 million, ranking 89th based on market cap. 

Since August 2023, FET has rallied by 350%. It has broken out of a long-term resistance at $0.61 on the weekly timeframe. Now, the price range of $1 remains the next significant long-term resistance.

The all-time high of the token on Binance is around $1.19. Due to the current breakout, FET will likely create a new all-time high in 2024. 

AI-Powered On-Chain Analysis 

Much of the focus is being made on the smart money movement in the crypto realm. However, on-chain analytical skills are not just used to track smart money movement but also to track illicit money.

With many hacks and illicit activities in the crypto ecosystem, on-chain intelligence will likely become the most sought-after skill in the upcoming years. Arkham (ARKM) is one such tool that facilitates tracking of well-known wallets, and criminal activities through concepts of AI, machine learning, and data science.

It employs the Intel-to-Earn economy wherein users can exchange the on-chain intelligence through ARKM tokens. For instance, if a crypto project suffers from a significant hack, the community members can track and doxx the bad actors and earn ARKM tokens.

Read more: How To Make Money With Intel-To-Earn on Arkham Intelligence

Hence, this system incentivizes the users to track the criminals and minimize the losses caused by exploits. The screenshot below from DefiLlama shows monthly sums of the amount lost to hackers.

TradingView’s data shows that ARKM has formed a cup and handle pattern on the daily timeframe, with the neckline at $0.6425. A breakout above the neckline can potentially result in a strong uptrend for ARKM.

While the Nansen analysts expect AI to continue to grow in 2024, they believe there is room for other narratives also. Community members also expect huge performances from other narratives, such as Real World Assets (RWA) and Game Finance (GameFi) in 2024.

Do you have anything to say about the AI crypto narrative or anything else? Write to us or join the discussion on our Telegram channel. You can also catch us on TikTok, Facebook, or X (Twitter).

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