These are two "hot" areas for the next crypto bull run
According to a January 30 post on X published by onchain analytics firm Santiment, real-world assets (RWA) and artificial intelligence (AI) are two areas in cryptocurrency that could be driving in the next bull run. Santiment points out that over the past six months, increasing crowd interest in these two topics can be seen.
RWA recorded an average engagement of 0.2% in social volume, while AI's average was 1.5%. While those numbers may seem small, they are causing controversy among the social masses with all the jargon associated with cryptocurrency.
Source: Santiment
Santiment also highlighted that RWA and AI tokens are benefiting from market decoupling, which is when some crypto assets do not follow Bitcoin's movements. Some examples of RWA tokens mentioned in the post that have shined when diverting from major market movements are AVAX, LINK, ICP, MKR and SNX.
As for the AI sector, the on-chain analytics firm mentions GRT, FET, AGIX, OCEAN and TAO as tokens with significant movement over the past six months.
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Growing interest in RWA and AI is also reflected in industry reports on crypto hot spots for 2024. Binance's “2023 Panorama & Themes for 2024” report features refers to both of these areas as “particularly interesting key topics”.
The report highlights the use case for tokenized US Treasuries in RWA, which can be used to “leverage real-world returns by investing in tokenized Treasury bonds without leaving the blockchain”. According to data presented by analytics firm rwa.xyz, tokenization of US government bonds, treasuries and cash equivalents is an $865 million industry with 657% annual growth.
Binance predicts the RWA industry will continue to expand, driven by rising interest rates in the United States, institutional adoption, developments in related infrastructure, such as identity and decentralized oracles. focus as well as interoperability solutions.
According to the report, the integration of AI and cryptocurrency is also an area poised for growth, opening up “endless potential” uses and alternatives to existing solutions. Some examples of use cases mentioned by Binance are trading automation, predictive analytics, creative arts, data analytics, and DAO operations.
Furthermore, using decentralized storage to manage data in AI training is another use case, this time using cryptocurrency as leverage for AI. This allows for broader participation, leading to a potential surge in innovation and development in the field.