The cryptocurrency market has witnessed a roller-coaster ride throughout this year, driven by various macroeconomic factors. Amidst this backdrop, the controversial launch of Worldcoin has managed to divert the attention of investors towards AI-powered tokens. However, recent trading data, as analyzed by Kaiko, indicates that the AI token market remained relatively stable, despite the hype surrounding the contentious cryptocurrency.
Why is Worldcoin Making Headlines?
Worldcoin (WLD) entered the scene on July 24, 2023, and quickly captured the fascination of crypto enthusiasts. The primary reason behind the buzz surrounding this cryptocurrency is its co-founder, Sam Altman, who also serves as the CEO of OpenAI.
As of the time of writing, the price of Worldcoin (WLD) has experienced a 1.49% dip in the last 24 hours, with a trading value of $1.14.
Worldcoin’s unique proposition lies in its commitment to building a network exclusively composed of verified individuals, excluding automated bots. This San Francisco-based venture aims to assign ‘World IDs’ to individuals globally. Through this ‘global identity verification’ system, Worldcoin envisions a future where individuals can interact with websites without the need to divulge personal information such as names, phone numbers, or email addresses.
However, this ambitious project has faced criticism from regulators and privacy advocates worldwide, who have raised concerns about the organization’s transparency regarding data collection methods. The accumulation of substantial amounts of personal data by a single entity has sparked significant data privacy apprehensions.
AI Token Trading Performance in August: A Closer Look
While the launch of Worldcoin generated excitement around AI tokens, it appears that the trading activity in this segment remained relatively subdued in August. Recent data from Kaiko reveals that the trading volume of AI-related tokens showed little change last month.
The analysis indicates that the trading volume for AI tokens witnessed a modest increase in the past month, reaching approximately $870 million, compared to $570 million at the end of July. However, when compared to the beginning of the year, this volume reflects a noticeable decline.
Dessislava Ianeva, an analyst at Kaiko, suggests that enthusiasm for AI tokens began to wane around July, largely influenced by shifts in global risk sentiment. The collective open interest in five prominent AI tokens—FET, GRT, RNDR, OCEAN, and ROSE—experienced a significant drop, plummeting from $170 million in February to $60 million in August.
Despite the buzz generated by the launch of Worldcoin and its innovative approach, it seems that the broader AI token market faced challenges in maintaining trading momentum during the month of August.