Deep Dive
1. Tokenomics Shifts (Bullish Impact)
Overview:
The Alliance’s $50M “Earn & Burn” program (ASI Alliance) removes tokens from circulation as ecosystem usage grows. This pairs with a planned $50M buyback (CryptoNewsLand) to offset selling pressure from vested tokens.
What this means:
Scarcity dynamics could counterbalance FET’s 2.37B circulating supply if adoption accelerates. Historical analogs (e.g., BNB burn) show such models lift prices when paired with utility growth.
2. Compute Expansion (Mixed Impact)
Overview:
The proposed CUDOS merger (ASI Docs) would add 10B+ CUDOS tokens (convertible to FET) and access to cost-efficient AI GPUs. However, the 5% merger fee and 3–10 month vesting create short-term dilution risks.
What this means:
Long-term, decentralized compute strengthens FET’s AI infrastructure. Short-term, conversion sell pressure could test the $0.65 support unless offset by fresh demand.
3. Technical Inflection (Neutral/Bullish)
Overview:
FET consolidates in a symmetrical triangle since March 2025. The MACD histogram turned positive (0.0028), but RSI 50.78 shows neutral momentum. A breakout above $0.74 (23.6% Fib) could target $0.88, while failure risks a drop to $0.58.
What this means:
Traders await confirmation – sustained volume above $120M/day would favor bulls. The 200-day EMA ($0.66) now acts as a pivot.
Conclusion
FET’s price hinges on executing token burns, managing merger dilution, and breaking technical resistance. The ASI Alliance’s roadmap positions it as a decentralized AI leader, but macroeconomic headwinds (global crypto market -0.22% monthly) add uncertainty. Will September’s CUDOS vote catalyze the next leg up, or will supply inflation dominate? Monitor FET’s turnover ratio (7.77%) for liquidity shifts.