Top AI tokens in the crypto industry are in a strong rally today, May 22nd, with Near Protocol, Worldcoin (WLD), Venice Token (VVV), Artificial Superintelligence Alliance ($FET), and Internet Computer ($ICP) being the top gainers. Their rally happened even as the broad crypto market pulled back amid the waning demand in Wall Street.
Top AI coins are doing well today | Source: CoinMarketCapWorldcoin, Venice Token, $FET, and $ICP rise ahead of OpenAI IPO
The main reason why these AI coins are doing well is that OpenAI, the creator of ChatGPT, is expected to file its IPO papers with the Securities and Exchange Commission (SEC).
OpenAI last raised billions of dollars at a $850 billion valuation, with companies like Softbank and NVIDIA participating. Therefore, if the IPO happens, it will be the second-biggest one ever after the upcoming SpaceXone.
Analysts believe that, while OpenAIs growth has slowed down lately, chances are that its market capitalization after the IPO will jump to over $1 trillion.
OpenAI's IPO is benefiting the Worldcoin token for one key reason: its founder. Sam Altman, who founded Worldcoin, is also the head of OpenAI. The resulting rally is driven purely by this narrative, as OpenAI does not currently use World. However, persistent rumors suggest that OpenAI will begin integrating World in the near future.
The tokens are also rising as market participants wait for the upcoming SpaceX IPO that will value it at over $1.5 trillion. While SpaceX is known for its rockets and Starlink, it is also a major player in the AI industry through its xAI product. xAI owns X, formerly known as Twitter, and Grok.
AI coins are also jumping because of the recent Anthropic news.As we reported on Thursday, the companys growth has surged in the past few months, helped by its recent models. It expects that its revenue will hit $10 billion in the second quarter, more than double what it made in the first one.
Separately, more users are using Venice AI, with the monthly visitors to its website rising to nearly 10 million, according to SimilarWeb (NASDAQ: SMWB). Also, its active users have soared to 3 million, while the token burn has accelerated.
The ongoing AI tokens jump is mirroring the performance of top AI stocks in the United States. Some of the top gainers in Wall Street this week are companies like Sandisk, Micron, and Seagate.
AI coins are rising despite broad crypto weakness
The ongoing surge in AI coins is happening despite the broad weakness in the crypto market. For example, Bitcoin has remained below the important support of $78,000, and American investors are dumping their holdings.
Spot Bitcoin ETFs have shed assets in the last five consecutive days, bringing the monthly outflows to nearly $1 billion. Similarly, Ethereum ETFs have suffered from outflows in the last nine days, bringing their monthly losses to $292 million.
Cryptocurrencies are struggling because of the ongoing macro events, including the soaring US bond yields. Data shows that the ten and thirty-year yields have jumped to 4.5% and 5.13%, the highest levels in years. In most cases, these events normally lead to a risk-off sentiment in the market.