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RWA and AI are hot areas in crypto for the next bull run, Santiment data shows

On top of social volume growth, both areas are also seen as bullish themes in crypto for 2024.

RWA and AI are hot areas for the next bull run, Santiment data shows

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Real-world assets (RWA) and artificial intelligence (AI) are two sectors in crypto that might be drivers in the next bull run, according to a Jan. 30 post on X published by on-chain analysis firm Santiment. For the past six months, a growth in crowd interest can be seen around those two topics, Santiment points out.

RWA registered an average participation of 0.2% in social volume, while AI’s average stands at 1,5%. Although those numbers might seem thin, they are disputing social volume with all the relevant terms related to crypto.

RWA and AI are hot areas for the next bull run, Santiment data shows
Image: Santiment

Santiment also highlights that RWA and AI tokens are benefiting from market decouplings, which is when some crypto assets don’t follow Bitcoin movements. A few examples of RWA tokens mentioned in the post that shine when diverting from the market’s major movements are AVAX, LINK, ICP, MKR, and SNX.

For the AI sector, the on-chain analysis firm mentions GRT, FET, AGIX, OCEAN, and TAO as tokens with significant movements in the past six months.

Bullish themes

The rise in interest in RWA and AI is also shown in industry reports about hot thesis in crypto for 2024. Binance’s report “Full-Year 2023 & Themes for 2024” mentions both areas as “key themes that are particularly exciting”.

The report emphasizes the tokenized US Treasuries use case in RWA, which can be used to “take advantage of real-world yields by investing in tokenized treasuries without leaving the blockchain”. According to data presented by analytics company rwa.xyz, the tokenization of US government bonds, treasuries, and cash equivalents is an $865 million industry with 657% yearly growth.

Binance predicts a continued expansion for the RWA industry, propelled by elevated rate hikes in the US, institutional adoption, developments in related infrastructures, such as decentralized identity and oracles, and interoperability solutions.

The integration of AI and crypto is also an area poised for growth per the report, opening up a “realm of possibilities” in terms of use cases and alternatives to existing solutions. Some use case examples mentioned by Binance are trade automation, predictive analytics, generative art, data analytics, and DAO operations.

Moreover, utilizing decentralized storage for data management in AI training is another use case which, this time, uses crypto as a leverage for AI. This allows broader participation, resulting in a potential surge in innovation and development in the field.

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