GRASS Surges 20% as Investors Favor Active AI Tokens

GRASS, a token associated with scalable infrastructure within the AI sector, has recently surged above $2.40, marking a significant breakout supported by strong trading volume. This rally follows weeks of consolidation, indicating a shift in investor sentiment towards assets with active development and stronger use cases. The token's price action suggests potential for further gains if it can overcome resistance around $2.60.

TAO, the token behind the decentralized AI platform Bittensor, has also shown impressive performance, climbing over 11% to reach $472.8. The token's weekly chart displays a sequence of higher lows and rising volume, with current levels approaching a breakout zone near $500. TAO's consistent buyer base and lack of distribution pressure have contributed to its bullish momentum, positioning it for a potential run back to the $600–$700 zone seen earlier in the year.

In contrast, WLD, another AI-related token, continues to struggle, remaining rangebound under $1.50 despite high-profile project backing. The token's price has been far from its peak near $11, and the chart reflects a clear downtrend with no confirmed reversal pattern. Ongoing unlock pressure adds supply to the market, limiting WLD's upside potential and preventing buyers from establishing control.

Legacy AI coins such as Fetch.ai (FET) and Akash Network (AKT) have lost market momentum, despite benefiting from high float and no remaining unlocks. These assets now see lower engagement in both trading activity and community traction, as investors shift their focus towards platforms with active development and stronger use cases. The market's attention has moved towards assets that align with evolving interests, leaving behind those that once led the sector.

Altcoin Sherpa commented on May 22 that the earlier leaders in this category now face limited exposure, making room for recently launched alternatives to take center stage. This shift in market dynamics reflects real-time trader behavior, with capital moving into coins that show both technical upside and active community backing. The market now favors assets generating fresh activity and visible growth, as opposed to those relying on past success.

The recent performance of GRASS and TAO, coupled with the struggles of WLD and legacy AI coins, suggests a split in the AI coin market. Investors are increasingly favoring tokens with active development and stronger use cases, while those with limited engagement and lower community traction are being left behind. This trend is likely to continue as the market cycles between fast-moving opportunities and longer-term infrastructure bets, with investor focus shifting towards price action and volume.