Over the past month, worldcoin (WLD), the native token of the digital identity project, has experienced a meteoric surge in value, granting holders an impressive 230% return on their investment. This significant price increase can be attributed to two primary catalysts: the unveiling of Sora by OpenAI and NVIDIA’s impressive fourth-quarter 2023 earnings report.
ai Narrative Fuels worldcoin’s token Performance
The recent price surge of WLD corresponds with the escalating interest in artificial intelligence (ai) narratives. OpenAI’s launch of Sora, a revolutionary text-to-Website video integration generator tool, has significantly boosted confidence in ai-related tokens, including WLD. This new development in the ai landscape has fueled optimism within the crypto community, leading to a substantial increase in demand for ai-associated tokens.
Moreover, NVIDIA’s release of their fourth-quarter 2023 earnings report, which surpassed expectations, further amplified the excitement surrounding ai tokens. As a result, investors have become increasingly interested in WLD and other ai-related assets.
Profit Realization Among worldcoin (WLD) Holders
Recent data from on-chain intelligence trackers reveals that significant WLD holders have cashed in on substantial profits as the price of WLD continued to rally. Since February 10, when the price surge gained momentum, a considerable number of WLD holders have consistently opted for profit-taking. This trend is not uncommon during periods of significant price growth and underscores the impressive surge in value experienced by WLD holders over this timeframe.
Among the top beneficiaries of the WLD price rally are investors who have seen returns ranging from 84% to a remarkable 236% on their WLD holdings. One of these top gainers initially acquired WLD in 2023 at an average price of $2, highlighting the substantial gains realized during this period.
Potential Correction Ahead
While the surge in WLD’s price has been impressive, there are indications that a correction may be imminent. The Network Realized Profit/Loss (NPL) metric, which tracks profit or loss realized by an asset’s holders on a given day, suggests that WLD holders have been consistently taking profits since February 10. Historically, such profit-taking spikes often precede corrections in prices and could signal a potential downturn.
Supply Distribution Trends
According to supply distribution data from Santiment, certain segments of WLD holders have been accumulating the asset between February 10 and 27. Specifically, wallets holding between 100,000 and 1 million WLD tokens have been accumulating the asset during this period. This trend is typical during price rallies, with larger holders adding to their positions in anticipation of further growth. However, once these holders begin offloading their WLD holdings, a decline in the price of WLD is likely to follow.
