This AI crypto won’t stop rising, up another 19% today
What happened
It has been an absolutely incredible ride for many artificial intelligence (AI) stocks, so much so that various AI-related cryptocurrencies are not being ignored by many investors. One of the best cryptos in this regard is once again The graph (GRT 18.78%)which has increased by 19% in the last 24 hours from 2:30 p.m. ET.
This move comes as The Graph receives increased attention related to its data indexing protocol, which enables decentralized search and various tool-generating functions on the blockchain. Often referred to as “Google (part of Alphabet) of blockchain,” The Graph’s functionality, which allows APIs called subGraphs to allow easier and more seamless development of DeFi applications, provides the building blocks for a variety of AI applications to be built. Therefore, this project seems to be seen by many investors as a behind-the-scenes way to play this growth rally in this pocket of the crypto market.
So what
The reality is that there are few options to choose from when it comes to artificial intelligence related crypto projects. The graph provides much of the backend infrastructure to allow various projects to exist. Thus, this crypto can be seen as a kind of “pick-and-draw” game in the wider AI project space.
What is interesting about today’s move is that it is not an isolated spike. Many times over the past year, tokens like GRT may have gained 20% in a given day, only to give up most of those gains in a relatively short period of time. That said, the rather impressive move in BRT of more than 200% year-to-date suggests that this is a rally with some momentum going forward.
What now
It’s unclear exactly when investors will see some fatigue and start taking profits with The Graph and other AI-related projects. So far, this rally seems to be holding steady, with quite impressive consistency this year.
Trees don’t grow to the sky, and at some point there will be a breath in the ground. That said, the incredible momentum we’re seeing this year in projects like The Graph suggests it may take some time for exhaustion to set in.
Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool’s board of directors. Chris MacDonald has no position in any of the shares mentioned. The Motley Fool has positions in and recommends Alphabet and The Graph. The Motley Fool has a disclosure policy.
