Fetch.AI’s FET token is up 40% on a weekly basis, breaking out of a nine-month consolidation phase; bullish momentum similar to its 2023 rally. Positive sentiment is also fueled by Fetch.AI’s upcoming deflationary “earn and burn” program, which further boosts confidence in its long-term prospects.
After months of consolidating in a tight range, FET has seen a breakout similar to the 2023 price action, with FET rallying for six months following a similar technical breakout.
A sustained rally now depends on the bulls’ ability to turn $1.77, the previous resistance point from March 2024, into solid support.
“Making money and burning money” fuels the rebound
To further bolster bullish sentiment, Fetch.AI recently announced its “earn and burn” mechanism, a deflationary strategy that reduces token supply by destroying a portion of fees generated through artificial intelligence (ASI) services.
The plan, which will begin in December, will reduce the total supply of FET, which will theoretically increase the value of the token.
Strategic cooperation with FET
The alliance plans to reduce the total FET supply from 2.8 billion to 2.7 billion, starting with a burn of up to 100 million tokens. The move coincides with the launch of “ASI Train,” a new platform designed to encourage developers to build specialized AI models.
To maintain this momentum, community engagement will play a key role. To this end, the upcoming collaboration between the first-layer blockchain Injective (INJ) and the blockchain artificial intelligence (AI) protocol Fetch.AI (FET) has sent an optimistic signal to community members and investors. The upgrade will improve interoperability between the two platforms, simplify asset transfers between networks and strengthen overall ecosystem integration.
While recent price action has garnered a lot of attention, the long-term success of FET may depend on how these new initiatives perform within the ASI ecosystem.
