- An increase in the flow of money to AI firms could lead to a bounce for these tokens.
- Healthy social dominance can be the key to revitalizing the rally.
AI themed tokens including Fetch.ai [FET] And render [RNDR] If correlation with NVDA is to be considered, it can be set to regain some of their lost advantages. For those unfamiliar, NVDA is the stock of NVIDIA Corp, an artificial intelligence firm. According to data from Google Finance, NVDA's value has increased by 12.26% in the last five days alone.
In fact, a recent report from Bloomberg revealed that AMBCrypto's results this week fueled the increase in capital invested in AI projects.
About two weeks ago, NVDA's price plummeted due to geopolitical unrest in the Middle East. At the same time, FET and RNDR prices also recorded sharp declines on the charts.
Source: Google Finance
Focus on shifting to these tokens if…
However, this was only one of several periods where the prices of these cryptocurrencies moved in the direction of stocks. In fact, potential growth may go beyond traditional asset reliance.
In this article, AMBCrypto looks at various on-chain metrics to see if they match the aforementioned predictions. To begin, we considered the question of social dominance.
According to Sentiment, Render's social dominance peaked at 2.69 percent on April 27, before readings on the charts fell. The FET also registered gains as high as 0.37% before falling to 0.13% at press time.
In theory, the state of the metric suggests that the debate around the token has been fine compared to other assets. For the price, this could be good news considering the fact that Reading has been in a healthy position.
Source: Santiment
If the metric had been above 3.45%, historical data suggests that the tokens would have been overheated. In this case, prices may fall on the chart, instead of climbing.
Therefore, if there is a little demand for these tokens, FET could cross its weekly peak of $2.62. RNDR, on the other hand, may be worth revisiting $9.53.
Is there no one to help?
In addition to social metrics, another indicator to consider is development activity. This indicator is important because the AI cryptoeconomy intends to expand the use cases presented by these projects. A look at the plan to merge FET with AGIX and OCEAN was a testament to this commitment. Thus, if utility is to stimulate demand, growth must not slow down.
Unfortunately, Fetch's development activity dropped after climbing a new monthly mountain on April 22. It was around this time that the metric in render terms also began to drop.
Source: Santiment
The drop in metrics meant that developers were slow to push code committed to shipping features over the network. However, market participants may need to monitor these metrics as well as NVDA.
Here is FET's market cap in realistic, RNDR terms.
If social dominance increases with the value of NVDA, RNDR and FET may tilt northward. If this is accompanied by increased development activities, double-digit growth may be possible in the short term. Also, a deficiency in the aforementioned factors may invalidate the bullish thesis.