Fetch AI (FET), SingularityNET (AGIX), AIOZ Network, and Render Token (RNDR) were among the best-performing cryptocurrencies on Monday morning. FET jumped to $2.40, a 28% increase from its lowest point last week.
SingularityNET rose to $1, higher than last week’s low of $0.7595 while AIOZ Network rebounded to $0.7650. Render Token, another popular cryptocurrency, rose to $10, 42% higher than last week’s low of $6.8.
Federal Reserve rate cuts hopes
The main reason for this comeback is that these altcoins have a close correlation with the price of Bitcoin. After plunging to $56,540 last week, Bitcoin has now rebounded and is comfortably above the $63,000 level. In most cases, altcoins tend to follow the price action of BTC.
Bitcoin rallied because of the recent weak US economic numbers that led to increased hopes of Federal Reserve rate cuts. A report by the Conference Board revealed that consumer confidence slumped to its lowest point since 2022.
Two reports by the ISM showed that the US manufacturing and services PMIs dropped below 50 in April. A PMI figure of 50 and below is usually a sign that a sector is contracting.
On Friday, another report by the Bureau of Labor Statistics (BLS) revealed that the economy created 175k jobs while the unemployment rate rose to 3.9%.
The NFP report came two days after the Federal Reserve delivered its latest interest rate decision. It left rates unchanged for the sixth straight month and hinted that it will be data dependent.
Therefore, the swap market points to two rate cuts later this year. Before the recent weak numbers, most analysts were expecting the Fed to either cut rates once or even hike later this year.
Cryptocurrencies tend to do well in periods of low-interest rates or when the Fed is pointing to future cuts. That also explains why US stock indices like the Dow Jones, Nasdaq 100, and S&P 500 rose while the US dollar index fell.
Superintelligence Alliance Token (ASI) merger ahead
The other reason why the Fetch AI and SingularityNET tokens jumped is that the two, in addition to Ocean Protocol are set to merge. After the merger, FET will become ASI with a supply of 2.63 billion tokens while AGIX and OCEAN will become ASI at a conversion rate of 0.4333, respectively,
Fetch.ai minted an additional 1.47 billion tokens to support the ASI Token Exchange Mechanism last week.
The developers hope to create a single AI platform as the industry continues growing. For starters, Fetch AI offers a decentralized user agent while SingularityNET is a decentralized platform for building AI tokens. Ocean Protocol is a tokenized AI and data platform that helps users monetize their applications.
These AI tokens are also doing well as investments in the artificial intelligence industry thrive. Microsoft has pledged to invest $2.2 billion in Malaysia and over $3.2 billion in the UK.
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