Cryptocurrencies associated with artificial intelligence (AI) have experienced a notable boost in value. This surge comes on the heels of a report from Nvidia, a prominent tech company renowned for its graphics processing units (GPUs), indicating a significant uptick in demand for their AI chips.
AI-Themed Cryptocurrencies on the Rise
The excitement surrounding Nvidia and the growing demand for chips that power AI applications has given AI-themed cryptocurrencies a considerable lift. SingularityNET (AGIX) saw an increase of up to 19%, rising to 29 cents, according to CoinMarketCap. Cortex (CTXC) rose by 6% to 17 cents, and Measurable Data Token (MDT) added 6.5%, reaching 4 cents a coin. All these tokens have a market cap of less than $40 million. Fetch.ai (FET), with a market cap of $195 million, gained nearly 5% to trade at 23 cents.
In contrast, most of the rest of the cryptocurrency market, including bitcoin and ether, remained flat.
AI Cryptocurrencies and Their Role
AI cryptocurrencies refer to the corresponding tokens of blockchain-based AI projects. For instance, Fetch.ai is committed to developing infrastructure for “smart, autonomous services” in various sectors, including supply chain, finance, travel, and more. Cortex aims to be the “first decentralized world computer capable of running AI and AI-powered dApps on the blockchain.”
The Impact of Nvidia’s Sales Forecast
Crypto traders received a sentiment boost from the rally in the S&P 500 and Nasdaq Composite, driven by Nvidia. The tech giant issued impressive sales guidance late Wednesday, citing demand for AI capabilities. Its projected sales for the second quarter of its fiscal 2024 were more than 50% above what analysts had anticipated.
The Future of AI and Blockchain
In a certain segment of the technology world, some market participants have long believed that the wild west of AI can benefit from blockchain technology and potentially be a positive catalyst for the crypto market at large. Specifically, as AI gets smarter and better at manipulating people’s identities on the internet, blockchain technology could potentially help using its ability to deploy digital identity solutions at scale. However, it’s still early days for both technologies.
Bitcoin and ether hovered around the flat line Thursday as investors remained focused on the ongoing debt ceiling negotiations heading into an extended holiday weekend. The minutes from the most recent Federal Reserve meeting, released Wednesday, also showed officials are divided over what the central bank’s next move should be when it comes to interest rate hikes.