The FET token from the AI project Fetch.AI has increased by 40% over the week, breaking out of a consolidation phase that lasted nearly nine months. The bullish momentum, similar to the rally in 2023, continues.
FET Chart
According to experts, the ongoing rally will depend on whether the 'bulls' can turn the $1.77 level, which acted as a resistance point in March 2024, into reliable support.
One of the reasons for the bullish sentiment could be the recent announcement made by the Fetch.AI developers. They presented a 'earn and burn' mechanism, a deflationary strategy aimed at reducing the supply of tokens by burning a portion of the fees generated by artificial superintelligence (ASI) services. The program, set to launch in December, will decrease the total supply of FET, which theoretically should increase the token's value.
The development team plans to reduce the total number of FET tokens from 2.8 billion to 2.7 billion by initially burning 100 million. This initiative coincides with the launch of the new ASI Train platform, aimed at encouraging developers to create specialized artificial intelligence models.
The partnership between the first-level blockchain Injective (INJ) and the AI protocol Fetch.AI has also sent 'bullish' signals to members of the crypto community and investors. This partnership will enhance interaction between the two platforms, simplifying asset transfers between networks and strengthening overall ecosystem integration.