Agentic AI platform ai16z has experienced a significant surge in its native token following the announcement of its plans to launch its own Layer-1 blockchain. The AI16Z token saw a 38% increase to reach an all-time high of $1.77 on December 31, with its market cap surpassing $1.9 billion. This rally was fueled by increased trading activity, with daily volume doubling to $330 million.
Looking at the weekly and monthly charts, the gains for ai16z were even more impressive at 156% and 383% respectively, making it one of the top-performing assets among the top 100 cryptocurrencies during these periods.
So, what led to ai16z’s remarkable surge? The primary catalyst was the project’s announcement of launching an open-source Layer-1 blockchain specifically designed for AI applications. This move marks a significant step in the project’s tokenomics revamp. Additionally, ai16z will introduce a token launchpad in the first quarter of 2025, which will serve as the main platform for deploying AI projects built on the Eliza framework, the project’s AI operating system.
The launchpad is expected to offer various features such as launch fees, staking requirements for access, and liquidity pool pairings to enhance the value of the ai16z token. The token will serve a dual purpose as a governance token within the DAO and as a utility token for platform activities.
Investor sentiment was further boosted by Eliza surpassing Google Gemini to become the world’s top AI repository on GitHub in December, attracting increased engagement from developers and contributors. This strong market performance, combined with the growing hype around AI agents, led to the ai16z token trending on Google and securing a top spot on CoinGecko.
Furthermore, whale accumulation in the past week contributed to extending ai16z’s rally. According to data from Lookonchain, significant whale wallets made substantial purchases of ai16z tokens following the recent developments, with one whale acquiring 2.62 million tokens for 22,641 SOL worth around $4.34 million.
Derivatives traders have also shown a significant interest in ai16z, with open interest in the token’s futures market rising by 256% to over $22.5 million. This surge in open interest indicates traders’ confidence in the potential continuation of the current rally.
Market experts predict that ai16z could surpass other AI heavyweights like Virtuals Protocol (VIRTUAL) in the near future. Daniel Cheung, a partner at crypto VC Syncracy Capital, believes that recent developments have positioned ai16z to outperform VIRTUAL, which currently boasts a market cap of $3.68 billion compared to ai16z’s $1.79 billion.
In conclusion, the launch of its Layer-1 blockchain and upcoming token launchpad have propelled ai16z to new heights, attracting significant investor interest and positioning it as a formidable player in the AI and blockchain space.