Market Metrics

Total Crypto Market Cap: down 3.7% to $2.63T
Total AI Sector Market Cap: down 7.3 % to $33.13B

Top Movers (7 days):

📈 Nuklai (NAI): up 26.5% to $0.02042
📈 ChartAI (CX): up 10.9% to $0.009019
📈 TokenFi (TOKEN): up 10.3% to $0.1228

Mindshare Check:

The AI sector currently accounts for 13.77% of the total crypto market’s narrative mindshare. This is down 35.72% during the past 7 days, primarily driven by the ETH ETF narrative consuming 41% of the total mindshare.

Daily News

🟠 Pantera Capital announced it is hosting a discussion on the integration of AI and Web3 technologies featuring Illia Polosukhin from NEAR Protocol and Jacob Steeves from OpenTensor on June 4th at 12pm EDT.

🟠 The Sturdy Bittensor Subnet (SN10) announced that it is upgrading its reward mechanism to optimize asset allocations over longer periods, promising higher yields for lenders by simulating real borrower behavior and scoring miners on simulated yields.

🟠 Virtuals Protocol and Chasm Network have partnered to integrate Virtuals' AI models with Chasm's Weave Platform, facilitating the creation of real-time AI applications without the need for coding.

Highlights of the Week

📈 Nvidia Announced Q1 Revenue & 10-1 Stock Split

Nvidia's shares surpassed $1,000 for the first time in extended trading on Wednesday, pushing its market cap to $2.5 trillion, following the release of its Q1 results. The company's revenue increased 18% from the previous quarter and 262% year-over-year, reaching $26.04 billion, surpassing analyst estimates. Nvidia's growth is fueled by strong demand for its AI chips from major tech companies, particularly in its data center segment.

CEO Jensen Huang announced that the company expects to generate revenue from its next-generation AI chip, Blackwell, later this year. The Blackwell platform, built for large-scale generative AI computing, has entered full production, highlighting Nvidia's commitment to advancing AI technology.

AIOZ Network has also become the first DePIN project listed on the Nvidia Accelerated Applications Catalog. This inclusion allows Nvidia's vast global user base to discover and utilize AIOZ Network DePIN's capabilities when building applications. While we don’t believe this will suddenly skyrocket AIOZ’s daily active users, we do see this a stamp of legitimacy for the project, which is promising.

🌐 NEAR Positioning Itself as a Hub for AI

NEAR Protocol is investing heavily in establishing itself as the premier ecosystem for the next generation of AI research and applications. According to a blog post written by NEAR Foundation founder Illia Polosukihn, the NEAR Foundation is focusing on developing core infrastructure that will enable data collection, crowdsourcing, creator rewards, access to compute resources, and novel monetization methods. This commitment has attracted the attention of cryptocurrency investment firm Grayscale, which recently created the Grayscale Near Trust (NEAR), a single-asset crypto investment trust.

To address the fundamental research challenges in AI, NEAR has also launched the NEAR.AI R&D Lab, led by Alex Skidanov and Illia Polosukhin. The lab aims to build an "AI Developer" capable of creating end-to-end Web3 applications based on user intents, and will hire top AI researchers and invest in cutting-edge research to achieve this goal. By focusing on ecosystem building, R&D, and infrastructure, NEAR aims to create a flywheel effect that will attract more builders and position the user-owned AI ecosystem for global success, providing an alternative to closed, centralized AI solutions.

♢ SEC Approves Spot Ethereum ETFs

This week marked another significant milestone in the crypto industry with the SEC’s approval of 19b-4 forms for Ethereum ETFs from major players like BlackRock, Fidelity, and Grayscale. While this is a monumental step, it's important to understand that it does not immediately translate to these ETFs being traded on exchanges.

For trading to commence, each ETF must have an effective S-1 registration, which involves a review process. For context, this process took about two weeks for Bitcoin ETFs. However, the S-1 registrations for Ethereum were not made effective prior to the approval, meaning we might have to wait a little while before the products begin to trade and the inflows begin.

On a positive note, when looking at the data, there is a pretty bullish case for ETH once the ETFs begin to trade.

• The Grayscale Ethereum Trust holds significantly less ETH compared to BTC, suggesting less downward pressure from Grayscale selling.

• ETH needs only about 25-30% of the inflows that Bitcoin saw to reach a new all-time high.

• Staking has been removed from this round of applications which is actually bullish for two reasons:

  • Staking yields will remain flat in ETH terms but likely up in $ terms when inflows begin.

  • The narrative of adding staking to the products will be in play and could potentially drive further speculation.

• ETH is currently deflationary (fee burn > issuance), plus liquid supply is extremely low due to the amount of ETH locked into smart contracts for staking, DeFi and new L2 launches. This could lead to a supply side crunch if the ETFs drive significant demand.

X Post of the Day

😢 RIP Doggo

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