Artificial intelligence (AI) tokens are leading the cryptocurrency's weekly rally, posting an average return of 37% over the past seven days, according to Artemis data.
AI Token's performance is more than double the market's average gain of 15.9% over this period. The move was primarily driven by Bittensor (TAO), which has risen 86.2% over the past seven days.
Additionally, Artemis is tracking 11 AI-related tokens: They posted double-digit gains of over 20% over the same period. Artificial Intelligence Alliance (ASI) and RENDER (RENDER) took the second and third places in weekly returns, growing 31% and 30.3%, respectively. each.
AI Token has risen 10.5% over the past 24 hours, nearly triple the market average of 3.7% over the same period.
Data, RWA, and Games
Of the 22 crypto sectors tracked by Artemis, only nine rose above the market average. Tokens related to data services and availability, such as Celestia (TIA) and Dymension (DYM), posted weekly gains of 27.1% and 33.6%, respectively.
The real world assets (RWA) sector was virtually tied with gaming-related tokens, both of which were up about 22.5% over the past week, rounding out the top five best-performing cryptocurrency areas on a weekly basis.
On the other hand, on the underperforming side, native tokens of decentralized applications such as Uniswap (UNI) and Jupiter (JUP) recorded weekly gains of 15%, just 0.9% below the market average performance.
Despite being the best-performing cryptocurrency in the first quarter, Memecoin failed to outperform the market average: it has risen an average of 11.1% over the past seven days, nearly 5% below the market average.
Concentrated Liquidity
The disconnect between different altcoin sectors was highlighted in a Sept. 23 report from Kaiko, which found that altcoin market cap remained stable at $270 million in Q3, suggesting that market makers are still providing liquidity to these markets.
However, breaking down assets, the 10 largest altcoins by market capitalization accounted for 60% of total assets this month, up from 50% at the start of 2022.
Meanwhile, when evaluating the top 20 altcoins by market cap, the depth decreased from 27% to 14% over the same period.
Kaico analysts suggested this could be related to market makers de-risking their portfolios and moving funds into more consolidated assets such as Bitcoin.
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