The Agentic AI platform’s native token, AI16Z, has experienced a significant rally following the announcement of its plans to launch a proprietary Layer-1 blockchain.
On December 31, AI16Z surged 38% to an all-time high of $1.77, elevating its market capitalization from $1.4 billion to over $1.9 billion. This impressive rally was bolstered by increased trading activity, with daily trading volume doubling to $330 million.
When evaluating AI16Z’s performance on a weekly and monthly basis, the gains were even more remarkable, soaring by 156% and 383%, respectively, making it one of the top-performing cryptocurrencies in the market.
What Fueled AI16Z’s Surge?
The primary driver behind AI16Z’s recent increase in value is its upcoming open-source Layer-1 blockchain, specifically designed for AI applications. This represents a pivotal advancement in the project’s tokenomics strategy.
Additionally, plans are underway for a token launchpad set to debut in Q1 2025, which will serve as the main platform for launching AI projects based on the Eliza framework, the project’s AI operating system.
This new platform is expected to feature launch fees, staking requirements, and liquidity pool pairings, all aimed at enhancing the value of the AI16Z token. It will serve dual purposes, acting as both a governance token within the decentralized autonomous organization and a utility token for various platform functions.
Investor confidence has further strengthened following Eliza’s recent achievement of becoming the world’s leading AI repository on GitHub, surpassing major competitors in December, attracting increased interest from developers and contributors.
The combination of robust market performance and growing enthusiasm surrounding AI agents has propelled the AI token to trend on search engines and achieve high rankings on cryptocurrency tracking platforms.
Recent actions by large investors, or “whales,” have also contributed to AI16Z’s rally. Reports indicate that two wallets, likely owned by the same investor, purchased 2.62 million AI16Z tokens for 22,641 SOL, totaling approximately $4.34 million. Another investor acquired 1.19 million tokens for 1.65 million USDC, averaging $1.39 per token.
Notably, some major investors have already realized substantial profits. One whale turned a $10 million investment into $15.66 million by acquiring 13.16 million AI16Z tokens, illustrating the potential for significant returns within this cryptocurrency.
The demand for AI16Z among derivatives traders has surged, with open interest in its futures market skyrocketing by 256% to over $22.5 million, reflecting trader confidence in the ongoing rally.
Market analysts suggest that AI16Z may soon outpace other prominent AI projects, such as Virtuals Protocol (VIRTUAL). Industry experts, including those from crypto venture capital firms, believe this project is strategically positioned for future growth as it continues to innovate in the competitive landscape of AI technology.
At the time of this report, VIRTUAL’s market cap is reported at $3.68 billion, while AI16Z stands at $1.79 billion, indicating a close race in this rapidly evolving sector.
