AI Tokens Lead Weekly Crypto Gains Following Fed's Interest Rate Cut

AI tokens have posted impressive returns, averaging a 37% gain in the past seven days, based on data from Artemis. This growth significantly surpasses the overall market's 15.9% increase during the same period.The standout performer among AI tokens was Bittensor (TAO), which surged by a remarkable 86.2%.

In total, 11 AI-related tokens tracked by Artemis saw strong double-digit gains, with many exceeding 20%. Artificial Superintelligence Alliance (ASI) and Render (RENDER) secured second and third place in terms of weekly returns, increasing by 31% and 30.3%, respectively.

In just the past 24 hours, AI tokens have climbed 10.5%, nearly three times the market's average gain of 3.7%.

Data, RWA, and Gaming Tokens

Out of 22 crypto sectors monitored by Artemis, only nine managed to outperform the market’s average gains. Tokens tied to data services and availability, such as Celestia (TIA) and Dymension (DYM), posted weekly gains of 27.1% and 33.6%.

Tokens related to real-world assets (RWA) and gaming were neck and neck, both rising by about 22.5% over the past week, rounding out the top five performing crypto sectors.

Underperformers: Decentralized Apps and Memecoins

On the other hand, native tokens of decentralized applications (dApps), like Uniswap (UNI) and Jupiter (JUP), posted a modest 15% gain for the week. While impressive, this was just 0.9% shy of the market average.

Memecoins, once a hot narrative in the crypto space, failed to keep pace with the broader market. Over the past seven days, memecoins saw an average increase of 11.1%, which is nearly 5% below the overall market’s performance.

Liquidity Trends in the Altcoin Market

A report by Kaiko, published on September 23, highlights the growing divide between different altcoin sectors. While the market depth for altcoins remained stable at $270 million in Q3, there’s been a notable concentration of liquidity.

The top 10 altcoins by market capitalization now account for 60% of the total market depth, up from 50% in early 2022. However, among the top 20 altcoins, market depth has dropped from 27% to 14%.

Kaiko analysts suggest this shift may be due to market makers reducing risk exposure and reallocating funds toward more stable assets like Bitcoin.