Daily Degen
May 7, 2025

KAITO Soars 40% as Smart Money Circles AI Narrative

AI tokens are heating up again, and the smart money is noticing. With KAITO soaring over 40% and meme coins losing steam, a rotation into utility narratives may be underway.

KAITO surged 40.58% amid rising AI narrative buzz, marking a strong shift in market sentiment away from meme coins. FARTCOIN and VIRTUAL both dropped over 8%, signifying a possible rotation into tokens with more perceived utility. Twitter influencers point to AI-data hybrids and privacy coins as the next investing frontier.

Movers and Shakers

Today's Top Gainers:
Top 7-Day Gainers:
KAITO (40.58%), MOG (23.28%), EOS (15.56%), ZEC (11.35%), STX (11.23%)
Today's Top Losers:
Top 7-Day Losers:
VIRTUAL (-9.29%), FARTCOIN (-8.57%), LAYER (-7.73%), DEEP (-7.23%), OM (-7.04%)

The Great AI Pivot: KAITO Leads the Charge

Crypto markets are once again in one of those delightful and rare moods: green candles lit all over the charts, chatter heating up on Twitter, and a wild swing in capital flows. Leading today’s performance charts is none other than KAITO, which posted a jaw-dropping 40.58% rally in 24 hours. From near-silent obscurity to front-page hype, KAITO seems to have captured the new market narrative: AI-driven infrastructure plays with real-world use cases might just be the next meta.

In a refreshing pivot from last week’s endless memecoin banter, today's price action suggests that traders are refocusing on projects that marry narrative strength with a technological backbone. With AI hype still strong in broader tech sectors, tokens like KAITO are benefiting from renewed investor attention. STX (11.23%) and ZEC (11.35%) also rallied, possibly catching some tailwinds from renewed interest in Layer-1 and privacy-focused plays.

Meme Token Flu: FARTCOIN and Friends Fall Hard

Not all sectors shared the sunshine. Meme tokens—yes, even those with flatulent branding—came back to Earth. FARTCOIN sank 8.57%, joining fellow tumbler VIRTUAL (-9.29%) and LAYER (-7.73%) in the red column. It’s a bit of a reality check for those riding the speculative wave, as quick and dirty gains often reverse just as fast in de-risking cycles.

This divergence marks a broader market sentiment shift. Risk-off behavior is typical when traders start reallocating capital into narratives with perceived longer durability. AI, privacy, and smart contract platforms appear to be the rotating beneficiaries, and meme coins might be losing their luster—at least for now.

Twitter Chatter: The Rise of Crypto/Data AI Hybrids

As always, Crypto Twitter was not silent. An emerging thread over the last 24 hours has been the momentum around crypto x AI infrastructure projects. Influencers—including names like @cryptokoala and @onchainoracle—have been pumping narratives that blend zero-knowledge proofs, large language models, and on-chain data accessibility.

This correlates well with KAITO's price action. While the project is still under the radar for some, insiders seem to know something—or at the very least, speculate feverishly—that KAITO may serve as a foundational indexing layer for AI interacting with on-chain smart contracts. Combine this with recent announcements of partnerships in the data API space, and it’s no wonder traders are jumping in early.

Correlations Worth Noting

The most interesting cross-asset movement today is between AI tokens and privacy coins. ZEC's +11.35% rally wasn't pure coincidence. The growing emphasis on AI governance and user data control plays into the thesis that privacy coins could be essential infrastructure when AI models start interacting on-chain.

EOS, another top gainer at +15.56%, has recently been the subject of speculative chatter about reviving its ecosystem with improved interoperability updates. Its spike could be less fundamental and more positional, but definitely fits into the broader trend: alt-L1s getting a second look, especially those with developer incentives or upcoming governance votes.

Rising From the Ashes: Is This the Start of a Rotation?

The two-headed market of today—a rising AI/data infrastructure sector and a declining meme coin sector—suggests that we may be entering a rotation phase. If smart money starts weeding out endless dog coins in favor of projects building real integrations with DePIN, AI infra, or zero-knowledge rails, we could be in for a Q2 renaissance of higher-conviction investing.

Of course, nothing is ever that simple in crypto. One viral TikTok could send volumes skyrocketing on a brand-new coin called SHART. But the vibes today feel different—more considered, more risk-calibrated, and slightly less feverish.

Final Word: Keep an Eye on the Smart Money Thermometer

Whether you're a degenerate yield farmer or a buttoned-up quant, today's moves offer signals worth watching. The movement into AI, L1s with active ecosystems, and high-utility privacy coins suggests traders are doing more than just refreshing Dexscreener. As volatility returns with slightly more consequence, consider allocating brain cycles to where capital is consolidating—not just where it’s exploding.

The Great AI Pivot: KAITO Leads the Charge

Crypto markets are once again in one of those delightful and rare moods: green candles lit all over the charts, chatter heating up on Twitter, and a wild swing in capital flows. Leading today’s performance charts is none other than KAITO, which posted a jaw-dropping 40.58% rally in 24 hours. From near-silent obscurity to front-page hype, KAITO seems to have captured the new market narrative: AI-driven infrastructure plays with real-world use cases might just be the next meta.

In a refreshing pivot from last week’s endless memecoin banter, today's price action suggests that traders are refocusing on projects that marry narrative strength with a technological backbone. With AI hype still strong in broader tech sectors, tokens like KAITO are benefiting from renewed investor attention. STX (11.23%) and ZEC (11.35%) also rallied, possibly catching some tailwinds from renewed interest in Layer-1 and privacy-focused plays.

Meme Token Flu: FARTCOIN and Friends Fall Hard

Not all sectors shared the sunshine. Meme tokens—yes, even those with flatulent branding—came back to Earth. FARTCOIN sank 8.57%, joining fellow tumbler VIRTUAL (-9.29%) and LAYER (-7.73%) in the red column. It’s a bit of a reality check for those riding the speculative wave, as quick and dirty gains often reverse just as fast in de-risking cycles.

This divergence marks a broader market sentiment shift. Risk-off behavior is typical when traders start reallocating capital into narratives with perceived longer durability. AI, privacy, and smart contract platforms appear to be the rotating beneficiaries, and meme coins might be losing their luster—at least for now.

Twitter Chatter: The Rise of Crypto/Data AI Hybrids

As always, Crypto Twitter was not silent. An emerging thread over the last 24 hours has been the momentum around crypto x AI infrastructure projects. Influencers—including names like @cryptokoala and @onchainoracle—have been pumping narratives that blend zero-knowledge proofs, large language models, and on-chain data accessibility.

This correlates well with KAITO's price action. While the project is still under the radar for some, insiders seem to know something—or at the very least, speculate feverishly—that KAITO may serve as a foundational indexing layer for AI interacting with on-chain smart contracts. Combine this with recent announcements of partnerships in the data API space, and it’s no wonder traders are jumping in early.

Correlations Worth Noting

The most interesting cross-asset movement today is between AI tokens and privacy coins. ZEC's +11.35% rally wasn't pure coincidence. The growing emphasis on AI governance and user data control plays into the thesis that privacy coins could be essential infrastructure when AI models start interacting on-chain.

EOS, another top gainer at +15.56%, has recently been the subject of speculative chatter about reviving its ecosystem with improved interoperability updates. Its spike could be less fundamental and more positional, but definitely fits into the broader trend: alt-L1s getting a second look, especially those with developer incentives or upcoming governance votes.

Rising From the Ashes: Is This the Start of a Rotation?

The two-headed market of today—a rising AI/data infrastructure sector and a declining meme coin sector—suggests that we may be entering a rotation phase. If smart money starts weeding out endless dog coins in favor of projects building real integrations with DePIN, AI infra, or zero-knowledge rails, we could be in for a Q2 renaissance of higher-conviction investing.

Of course, nothing is ever that simple in crypto. One viral TikTok could send volumes skyrocketing on a brand-new coin called SHART. But the vibes today feel different—more considered, more risk-calibrated, and slightly less feverish.

Final Word: Keep an Eye on the Smart Money Thermometer

Whether you're a degenerate yield farmer or a buttoned-up quant, today's moves offer signals worth watching. The movement into AI, L1s with active ecosystems, and high-utility privacy coins suggests traders are doing more than just refreshing Dexscreener. As volatility returns with slightly more consequence, consider allocating brain cycles to where capital is consolidating—not just where it’s exploding.

Newsworthy

For the first time in weeks, meme tokens are off the front page. KAITO's 40%+ pump and ZEC's double-digit gain showcase a rebound in sector rotation favoring longer-term utility plays over short-term hype.

Pro-Tip:

Watch for altcoins connected to AI or data infrastructure narratives—especially those quietly building development partnerships. Projects bridging real-world data and blockchain are likely next-hot assets.

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Disclaimer: The content of this article is for general market education and commentary and is not intended to serve as financial, investment, or any other type of advice.

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