AI Tokens ICP, FET Buck Crypto Market Drop as Apple Flags Artificial Intelligence Foray

• AI tokens rallied even as macroeconomic and political developments weighed on the broader crypto market.
• On Monday, Apple announced "Apple Intelligence," foraying into the artificial intelligence sector. Native cryptocurrencies of blockchain endeavors supposedly involved with artificial intelligence (AI) outshone the broader market after iPhone maker Apple (AAPL) showcased its efforts to bring the technology to its smartphones.

AI-focused decentralized blockchain platform Internet Computer Protocol's ICP token is about 10% higher on a 24-hour basis, the best-performing token among the 100 biggest cryptocurrencies by market value, according to data source Coingecko. Artificial Superintelligence Alliance's (formerly Fetch.AI) FET ranked fifth, adding 5%. Smaller tokens posted double-digit gains, with ChartAI's EYE leading the pack with a 50% surge.

Meanwhile, market leaders bitcoin (BTC) and ether (ETH) and other prominent cryptocurrencies nursed losses after pro-crypto U.S. presidential candidate Donald Trump's poor showing during a debate with rival Kamala Harris. The CoinDesk 20 Index (CD20), a measure of the broader crypto market, lost 0.7% in the same period.

Apple's "It's Glowtime" event on Monday focused on bringing AI capabilities to the smartphone. The Nasdaq-listed company said it would introduce AI features including writing tools, smarter Siri responses and advanced photo and video editing facilities under the banner of Apple Intelligence. The features will be available in the iOS 18.1 update and beyond.

The key feature of Apple Intelligence is that it will be a software development kit (SDK), allowing developers to build apps using on-device generative models while enjoying security and privacy features in Private Cloud Compute.

The event did not mention crypto or blockchain. Still, market participants are confident Apple Intelligence will have a positive effect on all things AI, including blockchain projects.

"Just like everyone's buzzing about Apple Intelligence in phones now, soon it'll be all about crypto," Pranav Maheshwari, an engineer at the Graph Protocol, said on X. "People will want blockchain and crypto payments baked into their phones. Watch the shift happen. Slowly, then suddenly."

Edited by Sheldon Reback.