Artificial Intelligence (AI) crypto tokens have regained momentum as demand for the industry bounces back. Fetch AI’s (FET) price soared to a high of $0.2541, the highest point since June 5th of this year. Similarly, SingularityNET’s AGIX price jumped to $0.266 (June 7th high). The two tokens have soared by more than 40% from the lowest point this year.
AI still in demand
SingularityNET and Fetch AI are some of the leading blockchain platforms in the AI industry. The two platforms aim to create AI ecosystems that are leveraging the blockchain industry. For example, SingularityNET has a broad ecosystem made up of dApps in key industries. Some of the top players in its ecosystem are Cogito, Nunet, Jam Galaxy, and Rejuve.
Fetch.ai, on the other hand, is a platform that is building smart agents to automate web3 systems. An autonomous agent can learn, predict, and undertake meaningful tasks. Some of its tools are agentverse, microagents, and autonomous economic agent framework agents.
SingularityNET and Fetch AI have gained traction this year as demand for AI has jumped. The same is happening in the stock market, where companies like Nvidia and C3.ai have seen their shares surge this year. Nvidia’s market cap has soared to over $1 trillion.
AGIX and FET prices have also soared as investors react to the positive news in the crypto industry. We have seen several companies like Blackrock, Invesco, and Deutsche Bank enter the industry.
Beware of a bull trap
The ongoing rally in AGIX and Fetch AI tokens could lead to more people initiating buy positions on the tokens. While the rally could continue for a while, investors should be cautious since this could be a bull trap or a dead cat bounce.
For one, some analysts believe that AI has become a new super-bubble. We have seen these bubbles several times before. For example, EV companies like Rivian and Lucid Motors have all plunged by double digits in the past few months. The same is true for cannabis stocks like Cronos and Tilray.
Further, it is also worth noting that the recent crypto news has nothing to do with Fetch and SingularityNet. Instead, companies are seeking to launch Bitcoin ETF. While BTC is a digital commodity, FET and AGIX are tokens that could be classified as securities. Therefore, there is a likelihood that this rally is a dead cat bounce, commonly known as a bull trap.
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