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Fetch.ai (FET) Continues 2023 Momentum, up Almost 200% Year-Over-Year

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FET Market Movement

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Bitcoin has pulled back from Tuesday's high above $28,000, a level the crypto asset traded before the mid-August sell-off, as investors mulled the implications of Grayscale's court victory over the US Securities and Exchange Commission (SEC).

Meanwhile, FET jumped 25% in value in the past three days, surging past $0.250 on Thursday. However, it went on to drop to $0.229 before going back up a bit to now trade at $0.24130. 

With a market cap of $245.6 million, FET is the 128th largest crypto asset, and it is currently up 10.9% against USD 11.2% and 11.3% against BTC and ETH, respectively, in the past 24 hours while managing $135 million in trading volume, representing an increase of 200% from a day ago. With this, FET is currently up 17% this month and 193.3% over the past year.

Looking upwards, the price has resistance present at $0.25, $0.27, and $0.29, while if the price moves down, it will find support at $0.17, $0.15, and $0.13.

For FET, 2023 has been a good start as prices went from $0.09225 at the beginning of the year to $0.550 on Feb. 8. However, over the next four months, FET dropped 67.2% in value to $0.180 in mid-June. And since then, the price has primarily been trading in the $0.20 and $0.25 range. 

Launched in 2019, the token quickly dropped from $0.35 to $0.03 later in the same year, only to hit its all-time low at $0.008169 in March 2020, much like the majority of the crypto market. Then, a year and a half later, it surged to its all-time high (ATH) of $1.17. The token is currently down 79.5% from its Sep. 2021 peak. 

FET is an Ethereum token that serves as the primary medium of exchange within the Fetch.ai ecosystem. To avail of the services provided by the platform, one has to pay in FET. In addition to payment, through staking, FED holders can earn semi-passive income from their FET tokens while contributing to the Fetch network's operations.

The token has a total supply of 1.15 billion, out of which just over 1 billion are already circulating in the market. 

Co-founded in 2017 by Humayun Sheik, Toby Simpson, and Thomas Hain, the platform raised $15 million in a seed funding round in June 2018 and then $6 million through an initial exchange offering (IEO) on Binance in February 2019. Fetch launched its mainnet in March 2021 and raised another $5 million. 

In July 2021, Fetch.ai upgraded its network, and a month later, it was able to force Binance to find and freeze $2.6 million worth of assets allegedly stolen from the project's Binance trading account by hackers.

This year, in March, the Artificial Intelligence (AI)-focused crypto protocol yet again raised $40 million from market maker and investment firm DWF Labs. The capital will be used for deploying decentralized machine learning, autonomous agents, and network infrastructure on its platform, the firm said. This fresh funding came during the rise in popularity of AI-driven chatbots such as ChatGPT and image generation software DALL-E.

Click here to learn all about investing in Fetch.ai (FET).

Latest in the World of Fetch.ai

Fetch.ai is a decentralized blockchain-based artificial intelligence (AI) and machine learning (ML) platform. It seeks to provide AI platforms and services that allow anybody to build and deploy AI at scale, at any time, and from any location. 

The platform combines blockchain architecture with “direct acrylic graph” (DAG) technology, and for consensus, it uses a combination of PoW, PoS, and DAG, which is the UPoW (useful proof-of-work/proof-of-beneficial work).

Fetch.ai aims to be a decentralized digital world in which autonomous software agents conduct productive economic activities. As such, users can utilize the platform to accomplish tasks such as distributing data or offering services and be compensated with FET tokens for their efforts. 

It further aims to link agents, digital entities representing data, service, hardware, individuals, or infrastructure elements, with value and users who need that value. Users can also digitize themselves or their businesses by claiming a “digital twin,” which is a personal agent who tries to improve users' lives. 

Fetch.ai Agents

So, while the crypto market has been making attempts at recovery, the project released the Fetch.ai Wallet version 0.15 in August. This marks the beginning of cross-chain support in the wallet, with the update serving “as a stepping stone toward a future where interoperability between EVM networks and the Cosmos ecosystem becomes accessible to all,” said the team.

The wallet now supports two new EVM chains, viz. Ethereum and Binance Smart Chain with more to be added in the future, including the ability to add custom chains in the next release.

At the same time, the team introduced native FET bridge support for Ethereum and Fetchhub networks, allowing users to effortlessly convert FET tokens from Ethereum ERC20 to Fetchhub native and vice versa. 

“As we embark on this journey toward greater cross-chain functionality, we envision a future where the lines between networks blur, and the endless possibilities of interoperable systems come to fruition,” said the Fetch.ai team, which is also planning to roll out AI-based automation in subsequent releases.

The month before, the team released Agentverse v0.7, bringing new features and enhancements to the Fetch.ai Agentverse platform. This included smart contract capabilities introduced to Managed Agents within the Agentverse, allowing users to deploy and interact with contracts on the Fetch.ai ledger using CosmPy's LedgerContract object. Additionally, the Protocol Manifest Viewer allowed users to explore detailed specifications of protocols uploaded to the Agentverse, enhancing collaboration and innovation within the community. At the time, the testnet faucet was also replaced with a central funding manager for convenience.

Earlier this in Feb. as artificial intelligence-focused cryptocurrencies gained favor among investors and traders, Fetch.ai teamed up with electronics giant Bosch to form a foundation called the Fetch.ai Foundation for the research and development of blockchain technology's real-world use cases in the areas of commerce, hospitality, and transportation.

The Netherlands-based non-profit organization has a three-tier governance structure and is inspired by the Linux Foundation's decentralized innovation model. With the help of Bosch, Fetch.ai aims to “fast track Web3 adoption in the industry” and encourage participant growth and contributions from new participants.

Most recently, Fetch.ai's Discord server got compromised, resulting in phishing attempts. The team has advised the community to remain vigilant and use only the official channels via its website. The team has contacted Discord, Twitter, and Google to take down the fake accounts and landing pages.

Click here to learn all about buying Fetch.ai (FET).

The State of Broad Crypto Market 

FET's latest price action came after Bitcoin made one of the largest hourly moves since Terra's collapse, which is in part due to low liquidity. The other time was during the Aug. 17 sell-off, which sent Bitcoin's price to a two-month low, resulting in traders recording $1 billion of losses in liquidations.

At the time of writing, the largest cryptocurrency by market cap is trading at $27,290, while Ether is exchanging hands at $1,710. The broader crypto market mirrored the two leading assets' move, with the total crypto market also falling a bit to $1.131 trillion. 

This week, the crypto market rejoiced with the news of a federal appeals court ordering the SEC to review its rejection of investment manager Grayscale's bid to convert its $16.95 billion Grayscale Bitcoin Trust (GBTC) into a spot Bitcoin exchange-traded fund (ETF), spurring an immediate rally in not just digital asset prices but also crypto-related stocks.

Talking about Grayscale's win, broker Bernstein said in a research report that it was the second landmark win for the crypto industry against the SEC following Ripple's favorable ruling last month. The ruling “likely clears the path for a spot bitcoin ETF” and increases the chances that the Commission might approve all the current applications together, analysts led by Gautam Chhugani wrote.

Advocates expect this product to enable a greater swath of the general public to invest in Bitcoin without having to go through the trouble of buying it directly. So far, the SEC has rejected every such ETF application it has reviewed.

Hence, the decision has been hailed as a landmark victory that could potentially pave the way for a spot BTC ETF in the future and the entry of fresh capital in the market. During the summer, several investment firms applied or renewed their bid to list such a product, including TradFi giant BlackRock. 

BlackRock's Bitcoin ETF “will attract an allocation of $20-50bn over time, a calculated assumption given that Gold ETFs alone hold $100 billion,” wrote Markus Thielen, head of research and strategy at Matrixport, in a note to clients this week, adding the well-diversified portfolio would allocate 42% to global fixed income, 21% to global equities, and 37% to alternatives — including 10.6% to BTC.

Why 2024 will be bullish?

However, it is notable that the ruling doesn't automatically guarantee the approval of Grayscale or any other firm's application. According to Berstein, it does give “a fair basis for Grayscale to be treated in line with other Bitcoin ETF applicants.” Bernstein has previously said that it expects a spot bitcoin ETF market to reach 10% of the BTC market cap in just a couple of years.

While it's too early to tell how sustainable the latest spike in price was, “we could see a slight reversal,” said Clara Medalie, director of research at Kaiko, in an interview. This expectation for a reversal is based on the fact that this rally was only accompanied by modest trading volumes, which represents market participants' engagement in the market and climbed to just a two-week high relative to other “mini bull markets.” 

The good thing is average BTC buy orders, unlike volume, have jumped to the highest since June, suggesting activity from large investors. The average trade size for Bitcoin on Kraken increased to above $2,000 on Tuesday after the ruling, from around $850 the day prior, as per the data from Kaiko. The last time BTC's average trade size was higher than $2,168 was in June.

While a series of ETF approvals will be a bullish catalyst for the crypto market, Medalie said, “We are still in the middle of a tumultuous period for the industry with quite a few bankruptcies and lawsuits ongoing.”

With Bitcoin price showing weakness after the initial jump, further downside is expected, with the support level to watch at around $25,000.

This week, another piece of good news came from the social media platform X (formerly Twitter), as it obtained a license required for crypto payments and trading in the US. The Rhode Island Currency Transmitter License was approved on Monday, which is required to provide virtual asset-related services on behalf of users. It will enable X to exchange, transfer, and store digital assets for its massive user base. 

Separately, X owner Elon Musk agreed late on Wednesday to DogeDesigner's post about the social media company not launching any X-coin but rather “making real money work on the app rather than some substitute currency.” Previously, Musk has stated that he wants to turn the platform into an ‘everything app.'

On top of it all, the US Labor Department's Job Openings and Labor Turnover Survey (JOLTS) said vacancies dropped to the lowest level in over two years in July. The data weakens the case for continued rate hikes and, as a result, sent Treasury yields and the dollar lower. 

Concluding Thoughts

So, as we saw, the crypto market has made several developments, but the price has lost strength, which means a further downtrend is to be expected in the near future. But while it takes time for the market to regain interest and traction, it is a good time for projects like Fetch.ai, which are also leveraging the trending AI narrative, to prepare for the times when retail gets back in.

Gaurav started trading cryptocurrencies in 2017 and has fallen in love with the crypto space ever since. His interest in everything crypto turned him into a writer specializing in cryptocurrencies and blockchain. Soon he found himself working with crypto companies and media outlets. He is also a big-time Batman fan.