AI-focused cryptocurrencies have gained significant attention in the crypto ecosystem due to their high daily active users, accumulation trends, and soaring prices. These cryptocurrencies, such as RNDR, GRT, and INJ, utilize artificial intelligence tools like ChatGPT, Fireflies, and SaneBox to automate tasks and drive innovation in workplaces. As AI is still relatively new in the crypto sector, investors and experts are eager to identify the next valuable asset in this field.
The combined market value of the top five AI cryptocurrencies is currently $21.2 billion, which is impressive considering that even the popular meme coin Dogecoin has a market value of approximately $22.18 billion. To gain insight into sentiment and user engagement, we have analyzed the on-chain metrics of three of the top AI cryptocurrencies: RNDR, GRT, and INJ. The goal is to determine which of these coins has the greatest long-term growth potential.
In the past week, RNDR experienced a 4.9% decline while GRT and INJ saw increases of 13.9% and 18.1% respectively, despite Bitcoin’s 8.9% increase. This demonstrates that altcoins can often offer higher returns compared to Bitcoin when performing well in the market. However, it’s important to note that the single-day price trends of these tokens reveal a different story. Technical analysis reveals a downward trend for INJ and GRT in daily charts, indicating a short-term bearish trend. On the other hand, RNDR has established a short-term range below the $11.3 resistance level, suggesting limited price movements.
Understanding the purpose of these tokens is also crucial. RNDR is a peer-to-peer platform that utilizes blockchain technology to distribute GPU processing power, with the aim of democratizing the GPU cloud and enhancing efficiency. The Graph, on the other hand, is an indexing protocol that provides developers with access to necessary data for building decentralized applications, ultimately reducing costs and improving server uptime. Injective serves as a decentralized exchange, facilitating cross-margin trading, futures, and forex transactions. As a Layer-2 application, it utilizes cross-chain bridges to grant investors access to assets across different networks.
Analyzing the on-chain metrics over the past three weeks, we observe that RNDR has seen an increase in daily active addresses but low development activity. This is a concerning trend for RNDR, unlike Cardano. Weighted sentiment remains negative, and the age of the cryptocurrency indicates accumulation in the market. GRT, on the other hand, experienced a decline in daily active addresses but demonstrated reasonable development activity. Although weighted sentiment was negative, it has shown signs of recovery in recent weeks. The increase in the cryptocurrency’s age and positive MVRV ratio provide positive signals for accumulators and short-term investors. Injective, however, showed a sharper downward trend compared to the others, with a decline in active users and low development activity. Negative weighted sentiment and a decreasing average coin age contribute to increased selling pressure.
Considering the factors of high daily active users, accumulation trends, and rising prices, RNDR appears to have the potential to outperform the other two coins in the coming weeks. However, it’s important to note that the information presented in this article does not constitute investment advice. Investors should be aware of the high volatility and risks associated with cryptocurrencies and conduct their own research.
