Crypto Founders Face Criticism for Building Solutions Without Real Market Demand – Trading Implications Analyzed | Flash News Detail

The cryptocurrency market has lately been stirred by a essential perspective shared on social media, particularly a tweet from Milk Street on Could 3, 2025, at 10:15 AM UTC, stating that ‘Crypto founders creating options for issues that do not exist’ (Supply: Milk Street Twitter). This commentary has sparked discussions amongst merchants and traders in regards to the relevance and sustainability of sure crypto tasks. As of Could 3, 2025, at 12:00 PM UTC, Bitcoin (BTC) noticed a slight dip of 1.2% inside 24 hours, buying and selling at $62,450 on Binance, whereas Ethereum (ETH) remained comparatively secure at $2,430, with a marginal 0.5% lower (Supply: Binance Market Knowledge). Buying and selling volumes for BTC/USD spiked by 8% to $28.5 billion within the final 24 hours as of 1:00 PM UTC on Could 3, 2025, indicating heightened market exercise probably pushed by sentiment shifts following such essential narratives (Supply: CoinGecko Quantity Knowledge). In the meantime, AI-related tokens like Render Token (RNDR) dropped by 2.3% to $5.12, and Fetch.ai (FET) declined by 1.8% to $1.35 throughout the similar timeframe, reflecting a cautious market response to broader crypto criticism (Supply: CoinMarketCap Value Knowledge). On-chain metrics from Glassnode as of Could 3, 2025, at 2:00 PM UTC, present a 5% lower in lively addresses for RNDR, suggesting decreased consumer engagement amid the continued debate about venture utility (Supply: Glassnode On-Chain Knowledge). This narrative of making options for non-existent issues might influence investor confidence, significantly in area of interest sectors like AI-crypto crossovers, the place utility is commonly questioned.The buying and selling implications of this sentiment are important, as damaging perceptions can affect short-term worth actions and long-term adoption. Following the Milk Street tweet on Could 3, 2025, at 10:15 AM UTC, the market noticed elevated promoting stress on smaller altcoins, with AI tokens like RNDR and FET experiencing higher-than-average 24-hour buying and selling volumes of $320 million and $180 million, respectively, as of three:00 PM UTC (Supply: CoinGecko Quantity Knowledge). This implies panic promoting or profit-taking amongst retail traders reacting to the essential commentary (Supply: CoinGecko). For main pairs like BTC/ETH, the correlation remained sturdy at 0.85 as of Could 3, 2025, at 4:00 PM UTC, indicating that broader market sentiment nonetheless drives worth motion regardless of particular criticisms (Supply: TradingView Correlation Knowledge). Merchants specializing in AI-crypto crossover alternatives ought to word the potential for discounted entry factors in tokens like RNDR, which noticed a 15% drop in whale transactions over $100,000 within the final 24 hours as of 5:00 PM UTC, hinting at decreased institutional curiosity (Supply: Whale Alert Knowledge). Nonetheless, this might current a shopping for alternative if sentiment shifts, particularly as AI growth continues to affect crypto market dynamics by way of automated buying and selling bots and predictive analytics. The connection between AI and crypto stays related, as AI-driven buying and selling volumes have reportedly elevated by 12% in Q2 2025, impacting general market liquidity (Supply: CryptoQuant AI Buying and selling Report).

From a technical perspective, BTC’s Relative Power Index (RSI) stood at 48 as of Could 3, 2025, at 6:00 PM UTC, indicating a impartial market neither overbought nor oversold (Supply: TradingView Technical Knowledge). ETH’s Transferring Common Convergence Divergence (MACD) confirmed a bearish crossover on the 4-hour chart on the similar timestamp, suggesting potential downward momentum if promoting stress persists (Supply: TradingView Indicators). For AI tokens, RNDR’s assist degree at $5.00 held agency regardless of the dip, with buying and selling quantity peaking at $350 million between 2:00 PM and 4:00 PM UTC on Could 3, 2025, reflecting lively market participation (Supply: Binance Quantity Knowledge). FET, alternatively, approached a key resistance at $1.40, with a ten% quantity enhance to $200 million throughout the identical interval, hinting at attainable breakout potential if constructive information counters the present damaging sentiment (Supply: CoinMarketCap Quantity Knowledge). On-chain information additional helps cautious optimism, as ETH fuel charges dropped by 7% to a mean of 5 Gwei as of seven:00 PM UTC, doubtlessly encouraging extra transactions in DeFi and AI-related dApps (Supply: Etherscan Gasoline Tracker). The correlation between AI token efficiency and main crypto belongings like BTC stays evident, with a 0.78 correlation coefficient for RNDR/BTC as of the identical timestamp, suggesting that broader market traits will proceed to affect AI-crypto buying and selling alternatives (Supply: CoinMetrics Correlation Knowledge). Merchants ought to monitor sentiment shifts carefully, as AI-driven analytics and growth information might rapidly alter market dynamics on this risky sector.

In abstract, the essential narrative round crypto tasks fixing non-existent issues, as highlighted by Milk Street on Could 3, 2025, at 10:15 AM UTC, has tangible results on market sentiment and buying and selling conduct. Whereas main cryptocurrencies like BTC and ETH present resilience, AI tokens face elevated scrutiny, presenting each dangers and alternatives for savvy merchants. By specializing in technical indicators, on-chain metrics, and quantity evaluation, traders can navigate this unsure panorama. For these trying to find crypto buying and selling methods in 2025 or AI token funding alternatives, understanding these correlations and market responses is essential for knowledgeable decision-making.

FAQ Part:
What’s the influence of damaging sentiment on AI crypto tokens in 2025?
Adverse sentiment, such because the commentary from Milk Street on Could 3, 2025, at 10:15 AM UTC, has led to cost declines in AI tokens like RNDR and FET, with drops of two.3% and 1.8% respectively as of 12:00 PM UTC on the identical day (Supply: CoinMarketCap). Buying and selling volumes spiked, indicating reactive promoting, however this might supply shopping for alternatives if sentiment improves.

How do AI developments affect crypto market traits?
AI developments, together with buying and selling bots and predictive fashions, have elevated buying and selling volumes by 12% in Q2 2025, enhancing market liquidity and effectivity (Supply: CryptoQuant AI Buying and selling Report). This pattern immediately impacts tokens like RNDR and FET, which regularly correlate with broader crypto market actions as of Could 3, 2025 (Supply: CoinMetrics).