Livepeer, a new narrative of full circulation, is moving towards becoming a decentralized AI video leader

Author: Alfred, Cycle Capital Research

1. Fundamental Development

Since we refocused on Livepeer in 2023, it has gradually moved from a decentralized video streaming network to a leader in the decentralized AI video track. The price of its token LPT has risen from around US$7 when the research report was released to more than US$21.

For previous reports, please refer to 《Livepeer (LPT) market starts again, can it break through the previous high?》.

After OpenAI released Sora on February 16, 2024, Livepeer announced that the community is working to introduce these features to the Livepeer network in the coming months as part of the artificial intelligence video plan, and has officially started a new narrative for AI video.

On May 21, Livepeer released an announcement about the launch of the AI ​​subnet, marking the gradual implementation of its decentralized AI video plan. The AI ​​subnet is a forked branch of the Livepeer video infrastructure network, providing a sandbox for the secure development and testing of new decentralized AI media processing markets and tools. The architecture of the AI ​​subnet is designed to organize different AI reasoning tasks into discrete job types, sending, receiving, and returning job requests for different types of tasks through specific pipelines. The subnet also allows Livepeer Orchestrator node operators to earn ETH and LPT income by deploying GPU resources for AI processing tasks. The launch of the AI ​​subnet is expected to make Livepeer the world's first decentralized video processing network with AI computing capabilities. Livepeer's open network of thousands of GPUs will be used to provide low-cost, high-performance processing to solve the structural problems of centralized AI computing.

The roadmap for Livepeer AI is divided into three development phases:

Phase 1: AI subnet design and stability (completed)

The first phase of the subnet proof-of-concept design and initial onboarding of existing Livepeer Orchestrator node operators ended on May 1, and more than 20 high-performance AI Orchestrator nodes are already active.

Phase 2: AI subnet optimization (in progress)

This phase focuses on improving the quality of service provided to AI Orchestrator and AI Gateway node operators. The goal is to enhance network provisioning by expanding the range of compatible GPUs (low VRAM GPUs and server GPUs), reducing container loading time, and handling edge cases. Work in this phase also includes working with select design partners through a new AI video startup program to improve the onboarding experience for application developers.

Phase 3: Livepeer Mainnet and AI Network Expansion (Q3 2024)

The mainnet is expected to be launched in Q3 2024, providing a high-quality experience for AI developers, equipped with tools and software development kits. Network expansion will allow efficient execution of custom models and workflows, run custom container code securely, enable flexible inference requests to reduce developer costs, and establish a method to verify the authenticity of the coordinator and ensure the source of content.

In addition, Livepeer has introduced a staking feature and will launch a staking and related data dashboard in June to further promote the staking adoption of LPT.

2. Token Update

The current LPT market value is 720 million, the token is fully circulated, the main trading venue is Binance, and the trading volume/mc in the past two weeks is between 10%-20%

After falling from the March high, a new support was formed. The first concentrated trading area is at 14.5, followed by 17-19; the technical pattern is in line with the Fibonacci key points, and it is currently standing above 21 (0.618)

In the 4-hour volume-price relationship, the rise is accompanied by the green column volume, the red column volume is small, and the buyer's power is relatively strong.

In the chain data, there has been a new flow of large-scale withdrawals in the past 30 days. According to Scopescan data, on May 14, 1.08 million coins were withdrawn in large amounts, and cex had a net outflow of about 500,000 coins. Referring to Nansen data, the top 20 holdings have added three large addresses in the past 30 days, totaling about 950,000 pieces. Except for the initial third-party custodial addresses, the outflow of other non-exchange addresses on the chain is relatively small.

III. Summary

1. On a monthly basis, LPT has been accumulating funds at the bottom for more than a year. The current self-raising has been going on for 3 months, and the price has increased by 3-4 times. Long-term chips need to be distributed continuously.
2. On the recent daily level, there are obvious on-chain addresses to build positions on the chips, and the price pattern conforms to the key position of Fibonacci. The buyer is stronger than the seller in terms of volume and price.

3. The project has opened a new narrative of AI, the tokens are fully circulated and fully changed hands, the market value is moderate compared to other AI targets, and the fundamentals have foreseeable benefits waiting to be released.