Amidst a remarkable upturn in the crypto market, NEAR Protocol, an artificial intelligence (AI) associated cryptocurrency, has reported a substantial growth in its unsettled contract value, hitting nearly 370 billion won in just a month.
NEAR Protocol Experiences an 88.63% Growth
According to data released by cryptocurrency information platform CoinGlass, by May 20, NEAR Protocol’s unsettled contracts soared by 88.63%, rising from 195 billion won to 367.8 billion won since April 20. Unsettled contracts, also known as open interest in the futures market, signify positions that traders still hold without being liquidated – an indicator typically interpreted as increasing market interest.
Other AI Cryptocurrencies Join the Uptrend
The NEAR protocol was not alone in this upward trajectory. Render (RNDR), another AI cryptocurrency, witnessed its open interest escalating by 80.61%, moving from 119.9 billion won to 216.6 billion won in the same duration. BitTensor (TAO) followed suit, achieving third place with a 57% increase, while SingularityNET’s AGIX token and Worldcoin (WLD) also displayed significant growth of 51.04% and 43% respectively.
NEAR Leads Amidst Price Hikes
In correlation with the spike in unsettled contracts, NEAR also led the pack with the highest price hike among AI coins, with a 39.25% surge — from 7,570 won to 10,540 won. Render (RNDR) trailed behind with a 27.05% jump in its price, whereas The Graph (GRT) witnessed a more modest rise of 15.38%. This collective uptick highlights the burgeoning interest and potential in AI-related cryptocurrencies.
Key Questions and Answers:
1. Why are AI-associated cryptocurrencies experiencing growth in the value of unsettled contracts?
The growth in unsettled contracts for AI-associated cryptocurrencies can be attributed to increasing investor interest in combining the innovative potential of AI with blockchain technology. Traders may speculate that AI will play a significant role in the future of various sectors, giving AI cryptocurrencies an edge.
2. What factors might contribute to the rising prices of AI cryptocurrencies like NEAR Protocol?
The rising prices could be influenced by several factors, including promising technological developments within the AI space, increased adoption of AI applications within the cryptocurrency ecosystem, investor sentiment, and broader market trends.
3. Are AI cryptocurrencies subject to the same volatility and risks as other digital assets?
Yes, AI cryptocurrencies, like all digital assets, are subject to the volatility and risks inherent in the crypto market. These include regulatory uncertainty, technical challenges within platforms, and shifts in investor sentiment.
Advantages and Disadvantages:
Advantages:
– AI cryptocurrencies offer innovative solutions by integrating blockchain with AI, potentially producing more intelligent and efficient decentralized applications.
– They often represent cutting-edge projects, which may have high growth potential and offer new opportunities for investment diversification.
– Increased interest in AI crypto can drive development and adoption rates higher, signaling a strong foundation for long-term growth.
Disadvantages:
– The integration of AI with blockchain is a relatively new concept which might present unforeseen technical challenges and scalability issues.
– The market for AI cryptocurrencies is not immune to hype and speculation, which can lead to unsustainable price increases and eventual corrections.
– As with other sectors in the cryptocurrency market, AI coins are susceptible to regulatory clampdowns and changes in policy that could dampen growth and investor enthusiasm.
Challenges and Controversies:
– The challenge of creating effective open interest without resulting in excessive market manipulation or speculation.
– Establishing clear regulatory frameworks for AI cryptocurrencies, which are necessary for broader adoption but also can dampen innovation if they are too restrictive.
– Balancing the decentralized ethos of blockchain with the more centralized nature of most AI systems remains a point of contention in the community.
For more information on cryptocurrencies and blockchain technology, you can visit:
CoinDesk
Cointelegraph
Please note that before visiting any cryptocurrency-related website, it is important to ensure that the URL is valid and the source is reputable to protect yourself from phishing and scams.
The source of the article is from the blog j6simracing.com.br