Livepeer (LPT) Soars 150%, Then Drops 40%: What’s Fueling the AI Token’s Wild Ride?

Livepeer (LPT), the native token of the decentralized video infrastructure project, has seen a rollercoaster month. After surging 150% in early June to hit a four-month high of $14.20, LPT has since dropped 40%, settling around $8.51 at the time of writing.

This dramatic price swing has raised questions across the crypto space: Is Livepeer’s rise a sign of long-term promise—or just another case of short-term hype?

What Sparked the LPT Rally?

The rally was largely driven by two key catalysts:

• New exchange listings, particularly on South Korea’s Upbit and decentralized exchange dYdX, opened the floodgates to a wider pool of investors.
• Grayscale’s decision to include Livepeer in its new Crypto AI Sector fund signaled growing institutional recognition of the project’s potential.

These developments sent daily trading volume soaring past $4 billion on May 30—ten times the norm and the highest of the year for LPT. Even now, daily volume remains above $1 billion, putting LPT at the top of the AI token leaderboard by trading activity.

Profit-Taking and Volatility Hit Hard

But with great volume often comes a wave of profit-taking. After reaching its peak, LPT quickly retraced, losing nearly half its gains. According to on-chain data, one whale recently withdrew 526,000 LPT (worth $4.81 million) from the staking contract and transferred it to Binance—a likely signal of profit realization.

Still, some analysts are optimistic. Trader Muneeb sees the $7 range as a key support zone:

“LPT eyes on this one. Should hold the green zone for a potential bounce to yearly open $14.50.”

That suggests LPT could see a rebound—provided the broader market stabilizes.

Livepeer’s Long-Term Vision: AI-Powered Video Infrastructure

Founded in 2021, Livepeer aims to decentralize and scale video streaming using underutilized GPU resources, offering real-time AI-powered video processing. The project raised $51.8 million early in its lifecycle, well before AI entered the crypto spotlight.

Now, with renewed interest in AI technologies, Livepeer is positioning itself as a foundational piece of infrastructure for the AI era.

“Livepeer is building the open video infrastructure for the AI era,” the team states. “Real-time AI video processing, decentralized GPUs, and a permissionless network powering new creative and technical frontiers.”

But even with this compelling vision, LPT’s price action underscores the risks. The AI crypto sector has dropped over 45% year-to-date, reminding investors that hype alone won’t sustain long-term value.