- On-chain metrics were used to analyze the health of three AI coins.
- RNDR had slightly more bullish price action over the past month.
AI cryptos are a promising sector in the crypto ecosystem. The rise of AI through tools such as ChatGPT, Fireflies, Midjourney, SaneBox and a dozen others is helping automate everyday tasks in the workplace or with innovation.
Combined with the relatively nascent nature of crypto’s AI sector, it has led residents to wonder if this is the niche to find the next gem.
The top five coins in the AI sector, according to CoinMarketCap, have a combined market capitalization of $21.2 billion. For comparison, the market capitalization of Dogecoin, the most important among memecoins, is $22.18 billion at the time of writing.
AMBCrypto decided to analyze the on-chain metrics of three of the top five AI cryptos, namely Render [RNDR]The graph [GRT]and injective [INJ] to understand holder sentiment and user engagement.
The big question is: which of these AI coins has the most bullish prospects in the long term?
An introduction to the trio
In the last seven days Bitcoin [BTC] is up 8.9%. RNDR has lost 4.9% at the time of writing, while GRT and INJ are up 13.9% and 18.1% respectively. This is important because when the market is convinced of an altcoin, it generally makes outsized gains compared to Bitcoin.
This does not fully reflect the price developments of the three coins in the one-day time frame. From a technical analysis perspective, INJ was the weakest among them. Both INJ and GRT have a bearish market structure on the 1-day chart.
Meanwhile, RNDR formed a short-term range below the $11.3 resistance level.
As for what the tokens aim to do, Render Network is peer-to-peer and uses the blockchain to distribute GPU rendering power. The goal is to democratize GPU cloud rendering and make it more efficient and scalable.
The Graph is an indexing protocol that allows developers to find and use public data to build decentralized apps. It aims, among other things, to reduce costs for developers with its market data and improve server uptime.
Injective is a decentralized exchange on the Cosmos blockchain that enables cross-margin trading, futures and forex. It is built as a Layer 2 application and uses cross-chain bridges to give traders access to assets from the Polkadot and Ethereum networks.
Now that we have an idea of what they do, a deeper dive into the statistics of these AI cryptos could provide more insight.
On-chain metrics reflected price trends to some extent
RNDR had an increasing trend of daily active addresses over the past three weeks. However, the values of the development activities were extremely low: 0.048, compared to Cardano [ADA] logged 94 at time of writing.
Weighted sentiment was negative and has largely been that way since March 22. On the other hand, the average coin age trended higher, indicating market-wide accumulation.
The MVRV ratio was close to zero, indicating slight gains for holders. Overall, accumulation and active users were positive, but development activity was concerning.
GRT has witnessed a downward trend in its daily active addresses since early March. On the other hand, development activity was fair at 12.17 at the time of writing, peaking at 39.4 in May.
Weighted sentiment has increased over the past week, but was negative at the time of writing.
GRT also saw an upward trend in the average coin age and a positive MVRV ratio. This emphasized accumulation and short-term gains and indicated that there was room for more gains.
Injective, unlike the other two, had a more drastic downward trend in its active users, especially compared to its December peaks. Development activity was also low at the time of writing at 3.69, and weighted sentiment was consistently negative.
The average coin age was also in a steady downward trend, highlighting selling pressure.
Read Renders [RNDR] Price forecast 2024-25
Over the past three weeks, the price has stabilized above $20, and short-term gains have risen during the recent rally. Still, it had the weakest bullish outlook of the three.
With its high daily active users, accumulation trends, and rising prices from recent lows, Render Network has a good chance to outperform the other two in the coming weeks.