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AI Tokens Rise as Whales Dive: What’s Next for RNDR and FET?
- Whales began accumulating AI tokens as Nvidia saw profits.
- Declining network growth could have a negative impact on these tokens in the long run.
Interest in AI tokens in the crypto space has grown significantly in recent days. One of the main reasons for the surge in the price of AI tokens would be the behavior of whales.
The whales are approaching
Recent data from Santiment has revealed a notable increase in whale activity in the AI sector Render [RNDR] has been a significant part of this trend.
A prominent whale made a substantial move on May 23 by transferring 4.89 million RNDR, worth $52.1 million, to an unknown wallet. This transaction occurred in a period of price correction.
Source: Santimento
Nvidia comes to the rescue
One of the reasons for the surge in price of AI tokens like RNDR was the success of NVDIA.
Chip-making tech giant Nvidia recently announced its first-quarter earnings, revealing record quarterly revenue of $26 billion, beating market expectations by 5.5%.
The rise in AI token prices coincides with investors’ anticipation for Nvidia’s quarterly earnings report. Nvidia’s success is perceived as progress in the field of artificial intelligence. Therefore, AI tokens gained significantly after Nvidia’s earnings call.
But it wasn’t just the RNDR that benefited. Other tokens like Recover.ai [FET] AND Bite[TAO] they have also seen a massive increase in interest and are up 20% and 5% respectively in the last week.
Read Render [RNDR] Price forecast 2024-25
Even though the price of these tokens increased, some problems persisted. Analysis of Santiment data by AMBCrypto indicated that network growth for FET and RDNR has decreased significantly.
This meant that the number of new addresses interacting with these tokens had plummeted. If the trend continues, it could cause major price corrections for these tokens in the future.
Source: Santimento