In the evolving landscape of cryptocurrencies, artificial intelligence (AI) tokens have emerged as frontrunners, showcasing substantial weekly gains. Recent data from Artemis indicates an impressive average return of 37% for these tokens over the past week.
AI Tokens Performance: A Comparative Analysis
AI tokens have significantly outperformed the general cryptocurrency market, which saw an average increase of 15.9% during the same timeframe. The notable surge was primarily attributed to Bittensor (TAO), whose value skyrocketed by 86.2% within the week.
Moreover, a total of 11 AI-related tokens tracked by Artemis recorded impressive double-digit growth, each surpassing a 20% rise. The Artificial Superintelligence Alliance (ASI) and Render (RENDER) ranked second and third, with respective increases of 31% and 30.3%.
In a shorter time frame, AI tokens also experienced a growth of 10.5% in the last 24 hours, eclipsing the market’s average gain of 3.7% during the same period.
Key Crypto Sectors: Data, Real-World Assets, and Gaming
When analyzing various crypto sectors, only 9 out of the 22 tracked by Artemis outperformed the overall market. Notably, tokens related to data services and availability, including Celestia (TIA) and Dymension (DYM), recorded weekly gains of 27.1% and 33.6%, respectively.
The real-world assets (RWA) sector closely matched gaming tokens, with both seeing approximately 22.5% growth over the past week, highlighting them among the top-performing areas of the week.
On the downside, tokens associated with decentralized applications, such as Uniswap (UNI) and Jupiter (JUP), only managed a 15% weekly gain, falling slightly short of the market average by 0.9%.
Despite being a standout narrative earlier in the year, memecoins have underperformed concerning the overall market, averaging an 11.1% gain over the past week—almost 5% lower than the overall market performance.
Market Dynamics: Concentrated Liquidity Trends
A report by Kaiko, published on September 23, highlighted the divergence among various altcoin sectors. The market depth for altcoins remained constant at $270 million in Q3, indicative of ongoing liquidity from market makers.
However, analysis revealed that the top 10 altcoins by market cap account for an increasing share of this depth, rising from 50% in early 2022 to 60% this month.
In contrast, the depth associated with the 20 largest altcoins by market capitalization has seen a decline, dropping from 27% to 14% over the same period.
According to Kaiko analysts, this shift may reflect a strategic move by market makers to mitigate risk by reallocating their funds into more stable assets like Bitcoin.