AI sector sheds $6.3B mcap, top tokens down over 13%.
TL;DR…
- Moody’s U.S. debt downgrade spooks markets, S&P 500 and Dow open weak.
- AI sector sheds $6.3B mcap, top tokens down over 13%.
- Binance stages Privasea and Alaya AI TGEs, A100x unveils $50M fund.
Bitcoin (BTC) has now held above $100K for the longest time ever, while its dominance is still holding strong at 62.9%.
U.S. stock indices like the S&P 500 and Dow Jones Industrial Average opened weak today, as rising bond yields and Moody's U.S. debt downgrade spooked the market.
Overall, a slight state of greed still permeates the market, with the CMC Crypto Fear and Greed Index sitting at 71.
AI Market Recap
Following more than a month of growth, the AI sector cooled off this week.
Source: Top AI Tokens Page
Almost $6.3 billion was wiped off its market capitalization (mcap) following a drop of 13.3%. Likewise, many major AI tokens gave back a chunk of their recent gains.
The top 10 largest AI tokens by mcap are in the red, and the worst affected include:
- Artificial Superintelligence Alliance (FET): -20.1%
- Render (RENDER): -17.8%
- NEAR Protocol (NEAR): -18%
- Internet Computer (ICP): -17.5%
- Filecoin (FIL): -15.1%
Zooming out to the top 100, things look even worse, with several tokens down more than 30%, including:
- AI Rig Complex (ARC): -47.1%
- Swarms (SWARMS): -34.1%
- Morphware (XMW): -33%
Source: Top AI Tokens Page
But it’s not all doom and gloom. A small cohort of AI tokens managed to buck the trend and capture sizeable gains, including Alaya Governance Tokens (AGT), SKYAI (SKYAI) and Grass (GRASS).
Source: Artemis
The vast majority of popular sectors saw a decline in fully diluted mcaps this week. The AI sector saw an 11% reduction, placing it roughly middle of the pack.
AI News Roundup
Another week, another wave of major updates in the AI space. Here’s a brief recap of what went down.
Binance Wallet Stages Twin TGEs for Privasea AI and Alaya AI: On May 14, Binance hosted the Privasea AI (PRAI) Token Generation Event, followed by the Alaya AI (AGT) TGE on May 16. Both required new “Alpha Points” for entry, with 200 million AGT reserved for future rewards.
Ninepoint To Launch Mutual-Fund Classes of Its Crypto & AI Leaders ETF: Toronto-based Ninepoint Partners will open four mutual-fund series of its Crypto and AI Leaders ETF, expected around May 21. The move lets Canadian advisers place the strategy in accounts that can’t hold ETFs, widening mainstream access to the AI-crypto theme. (source)
A100x Unveils $50M AI-Blockchain Fund: VC firm A100x has launched its second fund, committing $50 million to nurture early-stage AI, digital asset, and blockchain startups. Portfolio names already include Blockdaemon, Coreweave, Nansen, Mythical Games and Securitize.
AI Security Tools Help Binance & Kraken Repel Breach That Hit Coinbase: DLNews reveals that Binance and Kraken foiled the social-engineering attack that leaked Coinbase customer data by using AI to monitor support-staff chats and enforce granular data-access rules. Coinbase faces up to $400 million in costs after the successful hack. (source)
>> That’s a wrap for this week’s recap. Join us next week for more AI news and updates.
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