What happened
It's been an absolutely incredible ride for many artificial intelligence (AI) stocks, so much so that various AI-related cryptocurrencies aren't being ignored by many investors. One of the top-performing cryptos in this regard is once again The Graph (GRT +2.41%), which has surged 19% over the past 24 hours as of 2:30 p.m. ET.
CRYPTO: GRT
Key Data Points
This move comes as The Graph receives increased attention tied to its data indexing protocol, which allows for decentralized search and various utility-generating capabilities on the blockchain. Often viewed as the "Google (part of Alphabet) of blockchain," The Graph's functionality, which allows for APIs called subGraphs to allow for easier and more seamless development of DeFi applications, provides the building blocks for a range of AI applications to be built. Hence, this project appears to be viewed by many investors as a behind-the-scenes way to play this growth rally in this pocket of the crypto market.
So what
The reality is that there are few options to choose from when it comes to artificial intelligence-related crypto projects. The Graph does provide much of the backend infrastructure to allow for various projects to exist. Thus, this crypto may be viewed as a "pick-and-shovel" play of sorts on the broader AI project space.
What's interesting about today's move is that it's not an isolated spike. Many times over the past year, tokens such as GRT may have spiked 20% in a given day, only to have given up most of these gains in relatively short order. That said, the rather impressive year-to-date move in GRT of more than 200% suggests that this is a rally with some momentum moving forward.
Now what
It's unclear exactly when investors will see some fatigue and start taking profits with The Graph and other AI-related projects. Thus far, this rally appears to be holding steady, with rather impressive consistency this year.
Trees don't grow to the sky, and at some point, there will be a breather. That said, the incredible momentum we're seeing this year in projects such as The Graph suggests that it may take some time for exhaustion to set in.
