The market for AI coins is currently experiencing a significant downturn as the bubble deflates, with tokens like Fetch.ai (FET) and The Graph (GRT) losing up to 30% of their value in just one week, according to Coingecko data.
This decline comes at a time when Google search interest in the term AI has reached its highest level in the past five years. This spike in search queries suggests that mainstream audiences are increasingly interested in artificial intelligence.
Investors are being cautioned to be wary, as retail investors tend to enter the market at its peak. The recent surge in AI-related search queries aligns with historical trends, indicating that the market may be reaching a top.
While the AI rally has benefitted companies like Nvidia (NVDA), which is considered a bellwether for the industry, experts like Jeremy Grantham are warning that the current hype may not be sustainable. Grantham suggests that the AI rally could represent a potential bubble within a bubble, with inflated margins and multiples.
As retail investors tend to make emotionally driven decisions, the peak in AI-related search queries serves as a cautionary signal for those considering investing in AI cryptocurrencies. While the technology itself holds promise, the current market hype may not be sustainable in the long term. Investors are advised to approach AI-related opportunities with caution.
