AI cryptocurrencies lose momentum, can worldcoin reignite growth?

A research report by Kaiko reveals that leading AI tokens are losing momentum in the second half of 2023. Can the newly launched worldcoin by ChatGPT founder Sam Altman rekindle investor interest in the crypto artificial intelligence sector?

The launch of ChatGPT in November 2022 played a key role in the rise of crypto AI tokens at the beginning of 2023. However, blockchain data shows that leading AI tokens are losing momentum.

Investors are turning their attention away from AI tokens

After the launch of the AI chatbot, ChatGPT in November 2022, crypto AI tokens started 2023 with significant growth. By February, singularity (AGIX), render (RNDR), and graph (GRT) achieved triple-digit increases.

However, a recent report from Kaiko shows that crypto investors are shifting their focus away from AI tokens. The weekly transaction volume of leading AI tokens has gradually decreased since peaking around February.

Following a brief resurgence in March 2023, artificial intelligence tokens have failed to maintain momentum in the second half of 2023. Trading volume data indicates a decline over an extended period, suggesting that investors are losing interest.

What is worldcoin (WLD)?

Worldcoin was launched from beta on June 24, amid global media hype and skepticism from the crypto community led by Vitalik Buterin.

As described in the official whitepaper, worldcoin is an AI-based crypto project founded with the mission of ‘creating a globally inclusive identity and financial network.’

Worldcoin revolves around a global identity network that preserves privacy called World ID. The identification system essentially allows users to distinguish humans from artificial intelligence (‘proof of personhood’) while maintaining their privacy through zero-knowledge technology.

Can worldcoin save the crypto artificial intelligence sector?

The crypto artificial intelligence space has once again come into the media spotlight this week after ChatGPT founder Sam Altman launched worldcoin.

Optimistic investors still hope that worldcoin could reignite investor interest in the crypto artificial intelligence sector. However, the transaction volume trends of WLD in the first few days after launch were quite weak.

Santiment data shows that the trading volume of worldcoin has been in freefall since its launch on June 24. As of June 27, the transaction volume of WLD has already dropped by 40 percent from 12.34 million to 8.83 million tokens.

Although the price of WLD has firmly held above the support level of $2, signs of potential triple-digit growth have yet to appear.

It is still too early to say whether worldcoin can reignite interest among crypto investors in the artificial intelligence sector. Negative sentiments surrounding the project seem to be grounded, primarily concerning privacy and personal data collection aspects, including iris scanning, which appears daunting to all those who advocate for decentralization.

If early on-chain signals are to be believed, it is unlikely that Worldcoin will move the needle for another wave of triple-digit price pumps for Crypto AI tokens in H2 2023.