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As a narrative that surpasses Web3, AI’s business scale is far more than this, and the violent fluctuations caused by the market are the best time to re-layout.
On January 5 this year, we at FMG launched an index watch list for DePIN and AI.Over the past six months, the index has expanded to include RWA, DeFi, GameFi and Memecoin.In the AI index, after careful tracking and investigation, 23 projects were selected for real-time buying and trend tracking.At the same time, through several rounds of market cycles and volatile market conditions, we have screened out three projects with excellent performance.
AI Index Performance Analysis
The AI index uses the NAV (Net Asset Value) method to track profits, with the starting value set to 10.When the actual position increases, the NAV value increases, and vice versa decreases.
The profitability of AI indexes in the past six months can be divided into three stages:
Bottom-building stage (January to March): The index is in the bottom-building stage.
High sideways (March to mid-May): The index is trading sideways at a high sideways.
Downward phase (mid-May to present): The index experienced a downward trend.
Starting from the initial NAV value of 10, the AI index reached its highest point of 22.38 on March 15, meaning a 138% profit.Within about ten weeks thereafter, the NAV value stabilized at around 20, reflecting 100% of continuous profit.However, starting from May 17, the NAV value has dropped significantly, and as of July 24, it fell back to 11.22, with a floating profit of about 12%, and no principal loss was lost.
It is worth noting that among the 23 tokens in the AI index, 7 tokens have yielded more than 50%, among which AGI and AIOZ have the highest yields, both exceeding 200%. However, OLAS, COMAI, ASTO, and HEART tokens have not performed well.Good, with a drop of more than 50% in half a year.The average increase in the entire AI index was 37.6%.
Highlights in the AI Index
1. BitTensor (TAO)
Overview: BitTensor is a special project in the AI index. It does not directly contribute data or computing power, but manages and selects various AI algorithms through blockchain networks and incentive mechanisms to form a competitive and knowledge-sharing AI model market.
Performance: The price was $256 when it was added to the index, and rose to $728 on March 8, with a return of 184%.The current price is $350 and the return rate is 25%.
Market position: BitTensor’s FDV is US$7.1 billion, ranking 46th in the world, ranking first in the Web3 AI sector.
Development: Plans to expand to 1024 slots to enhance the ecosystem.Recently, the personal data network Masa launched an LLM-based AI data subnet on BitTensor, strengthening the ecosystem and cooperation.
2. AIOZ Network
Overview: AIOZ Network is a global AI+DePIN infrastructure that integrates decentralized storage, AI computing and streaming services.Powered by 180,000 global edge nodes, providing efficient distributed computing and data processing.
Performance: The initial price was US$0.15, and rose to US$1.03 on March 27, an increase of nearly 600%. The current price was US$0.5, an increase of 250%.
Token Economics: AIOZ adopts an inflation model, with an initial inflation rate of 9%, down 1% to 5% per year.Tokens are used for transaction fees, node rewards and infrastructure revenue, promoting node participation and user growth.
Market position: listed on Bybit, Crypto.com and Bithumb, with a market value of US$570 million, and Coinmarketcap ranked 117.Targeted to Binance and OKX and make it to the top 100.
Acknowledgement: On May 22, AIOZ became the first Web3 solution to be included in the Nvidia accelerated application catalog, narrowing the gap with the leading Web3 AI projects RNDR and Akash Network.
3. FET
Overview: Originally from the Fetch.ai machine learning platform, it merged with Ocean Protocol and SingularityNET on June 28 this year to form the Artificial Intelligence Super Alliance (ASI).
Performance: The price was US$0.66 when building a position, and the highest price rose to US$3.27, an increase of 400%. The current price is US$1.5, an increase of 100%.
Market position: The merged FDV is US$4 billion, and Coinmarketcap ranks 26.
Significance: This is the first time that the Web3 AI sector has merged different AI products. Integrating liquidity and users and complementing businesses may become an important competitive method in the future Web3 AI track.
Outlook and expectations
Overall, AI Index reflects the current trend of the Web3+AI track:
1. Application-based AI projects are less stress-resistant when encountering market fluctuations and are prone to severe fluctuations;
2. AI projects with computing power scenarios, data scenarios and algorithm scenarios performed more firmly;
3. BitTensor is showing the dominance of top AI. The OLAS and COMAI, which were previously able to compete with, performed poorly as TAO in the process of bull and bear transformation;
4. As a narrative that surpasses Web3, AI’s business scale is far more than this. The violent fluctuations caused by the current market are just the best time to re-buy the bottom line.
