This AI Crypto Won’t Stop Soaring, Up 19% Today

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What happened

It has been an absolutely incredible run for many artificial intelligence (AI) stocks, so much so that various AI-related cryptocurrencies are not ignored by many investors. One of the best performing cryptos in this regard is once again The Graph (GRT 13.06%), which has jumped 19% in the past 24 hours as of 2:30 p.m. ET.

The move comes as The Graph is receiving increased attention related to its data indexing protocol, which enables decentralized search and various utility generation capabilities on the blockchain. Often referred to as the “Google (part of Alphabet) of the blockchain”, The Graph’s functionality, which enables APIs called subGraphs to enable easier and more transparent development of DeFi applications, provides the building blocks for a range of AI applications to build . 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 AI-related crypto projects. The Graph provides much of the core infrastructure to allow various projects to exist. So, this crypto can be seen as a sort of pick-and-shovel game on the larger space of the AI ​​project.

What’s interesting about today’s move is that it’s not an isolated spike. Several times over the past year, tokens such as GRT may have gone up 20% on any given day, only to have given up most of those gains in a relatively short period of time. That said, the GRT’s rather impressive year-to-date movement of over 200% suggests this is a rally with some momentum going forward.

Now what

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 up, with a rather impressive regularity this year.

Trees don’t grow skyward, and at some point there will be a break. That said, the incredible momentum we’re seeing this year in projects such as The Graph suggests that it may be a while before burnout sets in.

Suzanne Frey, an executive at Alphabet, is a board member of The Motley Fool. Chris MacDonald has no position in the stocks mentioned. The Motley Fool fills posts and recommends Alphabet and The Graph. The Motley Fool has a disclosure policy.

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