AI Token Livepeer (LPT) Soars 150%, Then Drops 40% – What’s Driving the Volatility?

Livepeer’s native token, LPT, has seen an impressive surge. In June, it jumped 150% to a four-month high of $14.20.

However, the price has now dropped 40% from that recent peak.

Behind Livepeer’s Strong Comeback in June?

First, the rally gained momentum after LPT was listed on major platforms, including South Korea’s Upbit exchange and the decentralized exchange dYdX.

In addition, Grayscale included Livepeer in its newly created Crypto Artificial Intelligence (AI) sector. This inclusion signals recognition of Livepeer’s potential to disrupt traditional video infrastructure by integrating AI.

The listing news sent LPT’s daily trading volume soaring to over $4 billion on May 30—more than 10 times the previous average. This marked its highest daily volume so far this year.

At the time of writing, LPT’s trading volume still exceeds $1 billion. According to CoinMarketCap, it has surpassed Virtual Protocol to become the highest-volume AI token on the market, which indicates strong interest from traders.

AI Altcoin Trading Volume. Source: CoinMarketCap

However, LPT’s price has since dropped sharply, down 40% from its $14.30 peak to around $8.50. This suggests that the surge in volume, paired with the price drop, may reflect profit-taking activity.

It also implies that investor expectations could be short-term.

Livepeer (LPT) Price Performance. Source: BeInCrypto.

At press time, LPT was trading at $8.51, up over 10% in the past 24 hours.

Whales have taken advantage of increased liquidity and price gains to realize profits. On-chain data today shows that a whale withdrew 526,000 LPT (worth $4.81 million) from LPT’s PoS staking contract and transferred the funds to Binance.

Although selling pressure is mounting, some technical analysts believe the price could rebound from the $7 region.

Technical analysis and LPT price prediction. Source: Muneeb on X

“LPT eyes on this one, should hold the green zone for a potential bounce to yearly open 14.5$,” crypto analyst Muneeb predicted.

Livepeer Faces Challenges as AI Tokens Struggle to Recover

Livepeer has a clear mission: to revolutionize video infrastructure by leveraging AI. Its real-time video processing capabilities and a decentralized approach to GPU usage place it at the forefront of innovation.

Launched in 2021, Livepeer raised $51.8 million—well before the current AI boom. In 2025, the project is returning with renewed momentum, fueled by exchange listings and increasing attention from funds interested in AI technology.

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

But this renewed spotlight also brings challenges. Despite the recent gains, LPT faces headwinds as the broader AI crypto sector has declined by over 45% year-to-date. This downturn highlights the volatile nature of the market and the risks associated with investing in AI-related cryptocurrencies.

Performance of crypto sectors year-to-date. Source: Artemis

Listing on exchanges and inclusion in key indices may bring short-term attention. However, Livepeer must overcome current market challenges and prove real-world use cases beyond the crypto ecosystem for sustainable growth.