A crypto rally resumed during the weekend, with Humanity Protocol (H), Worldcoin (WLD), Artificial Superintelligence Alliance (FET), and Venice Token (VVV) being the top gainers.
Humanity, Worldcoin, FET, and Venice Token are soaring
Humanity token jumped to $0.40, its highest point since October last year, and 750% from its lowest level this year. This surge has brought its market capitalization to over $1.1 billion.
Worldcoin (WLD) token price jumped to $0.3458, up by 52% from its lowest point this year. FET price jumped to $0.2752, its highest level since January this year and 107% from the year-to-date low. Venice Token soared to $17.92, up by over 1,500% from its December lows.
Venice Token, Worldcoin, Humanity, and FET chart | Source: TradingView
The other top gainers in the crypto industry were Binance Coin (BNB), PancakeSwap (CAKE), Aster (ASTER), and Midnight (NIGHT). In total, the market capitalization of all tokens rose by over 1.1% to $2.51 trillion.
Humanity, Worldcoin, FET, and Venice Token are rising because of the ongoing artificial intelligence rally. The same is happening in the stock market, where the S&P 500 and Nasdaq 100 indices have soared to a record high.
Top stocks in the AI industry like Sandisk, Micron, Dell, Seagate, Intel, and Western Digital have soared this year. Sandisk (NASDAQ: SNDK) stock has jumped by 600% this year, while Micron (NASDAQ: MU), Seagate (NASDAQ: STX), and Western Digital (NASDAQ: WDC) have soared by over 200% this year.
AI tokens and stocks have soared because of the ongoing AI boom and the upcoming major IPOs. SpaceX, which owns xAI, the parent company of Twitter and Grok, will launch its $1.78 trillion IPO in June.
OpenAI, the parent of ChatGPT, also plans to go public in the coming months, in which will value it at over $1 trillion. Most notably, Anthropic, the creator of Claude, is expected to go public after recently raising cash at a $900 billion valuation.
Crypto market rally triggered by risk-on sentiment
These tokens are also rising as investors embrace a risk-on sentiment in the market. For one, there are signs that the US and Iran will reach a deal to extend the ceasefire by 60 days.
The rising ceasefire hopes have led to a crude oil price plunge, with Brent falling to $92 from the year-to-date high of $126. The West Texas Intermediate has also dropped.
This performance has led to a retreat in bond yields. For example, the ten-year yield dropped to 4.43% from the year-to-date high of 4.68%. Other bond yields have pulled back, raising the possibility that the Federal Reserve will not hike interest rates this year.
The same is happening with the US dollar, which has retreated to $98.66 from this month’s high of $99.20.
Still, the crypto market faces some major risks ahead. For one, top coins like Bitcoin and Ethereum ETFs have continuing shedding assets this month. Bitcoin ETFs shed over $2.4 billion this month, while Ethereum lost over $500 million.
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