Core Fund Update
February 2024 was an extraordinary month for the Web3 industry, witnessing strong momentum across the entire market. During this period, Bitcoin experienced its largest surge since May 2019. This trend was largely fueled by significant inflows into Bitcoin Spot ETFs, especially Blackrock’s IBIT, marking Bitcoin’s sixth consecutive month of gains. Following strong momentum in the flagship digital asset, the entire Web3 industry saw significant growth, reaching a $2.44 trillion market cap, a level last seen in January 2022.
While the entire industry saw growth, AI has emerged as one of the hottest sectors in the Web3 industry, seeing significant attention from investors in February. Capitalizing on these market trends, the Core Fund soared with a 27% increase in performance, leveraging gains from both Bitcoin and alt coins alike. his newsletter takes a closer look at the factors contributing to the Core Fund’s performance this month, including Bitcoin’s record-breaking month, the growth of the AI sector in Web3, and other important developments in the industry.
Bitcoin’s Record-Breaking Month
Bitcoin emerged as the standout asset in February. The introduction of Bitcoin Spot ETFs in the US ignited considerable interest and attracted record high levels of investment. Right from the start of these ETFs in early February, the price of Bitcoin began to climb steadily. It reached a peak of $64,000 during the month, marking a significant growth of 51%. This period also saw an influx of nearly $7.5 billion into Bitcoin spot ETFs and highlights the strong investment interest in Bitcoin.
The month was notable for recording the biggest monthly dollar increase in Bitcoin’s history, adding roughly $390 billion to its market cap. The high demand for Bitcoin ETFs, combined with a limited supply, played a key role in driving up the price. Investors showed they were willing to pay higher prices for Bitcoin, especially with the upcoming halving event expected to reduce the new supply of Bitcoin by 50%. The overall sentiment in the Bitcoin market remains strongly bullish. With 99% of Bitcoin holders in profit and the price nearing its all-time high, Bitcoin continues to assert its dominance as an asset class and showcases the strong market confidence in Web3.
AltCoin Season Is On The Way
The altcoinsector has seen an impressive rally, with a 38% increase in its market capitalization, not including Bitcoin. The total market cap for altcoins is now just shy of $1.1 trillion, approaching its previous peak of $1.707 trillion. This surge in market cap can largely be attributed to the significant developments being made on the regulatory front, particularly concerning Bitcoin. Investors are anticipating similar regulatory approval for other Web3 products, creating a “trickle-down effect” that boosts confidence in the broader Web3 market. Anticipation surrounding Ethereum Spot ETFs has sparked optimism among investors, with at least 10 firms looking for approval from the SEC.
AI Sector Leading The Way
In a month marked by growth, certain themes clearly came to the fore, with developments related to AI(Artificial Intelligence) taking the lead in terms of performance. AI tokens such as Fetch.AI, OCEAN and The Graph have experienced notable surges in recent weeks, driving the trend for the Web3 AI sector with several tokens having achieved triple-digit gains. This surge in AI-related tokens underscores the significant developments occurring across all fronts within the Web3-sector.
- Fetch.ai (FET) stands out as a core example of the developments in the AI sector, showcasing not only a growth of over 180% since 2024 but also its success in onboarding corporate tech giants such as Deutsche Telekom and Bosch as partners.
- Creating AI platforms and services that let anyone build and deploy AI services at scale, anytime and anywhere.
- Ocean Protocol (OCEAN) saw a price surge of over 150%, and achieved significant milestones in their product offerings, including the launch of Ocean Predictoor, Ocean CLI, and Ocean Uploader.
- Monetizes AI models & data while preserving privacy.
- The Graph (GRT) has also witnessed a price increase of over 100% since the start of the year, fueled by product advancements, anticipated real-world applications, and strategic partnerships with industry leaders like Coinbase and AAVE.
- The Graph makes it easy for developers to pull up specific information from blockchain data without needing complex backend systems.
These price actions and developments showcased by the AI sector in the Web3 industry highlight the growing potential of AI-related projects on the blockchain. Fetch.ai, Ocean Protocol, and The Graph are prime examples of the types of projects that the Core Fund is invested in.
For investors seeking exposure to AI-related projects within the Web3 ecosystem, the Core Fund offers an opportunity to invest in projects that have been heavily vetted for their potential for growth and innovation. The Core Fund aims to continue to capitalize on the momentum of projects like Fetch.ai, Ocean Protocol, and The Graph, positioning investors for long-term success in the Web3 industry.
Conclusion
As the Web3 industry continues to see growth, the Core Fund remains at the forefront taking advantage of the ever-moving market dynamics and capitalizing on emerging trends. With Bitcoin’s record-breaking month, altcoin season kicking off and the exploding AI sector, there has never been a more opportune moment to invest into Web3 like now.
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