coindesk.com
AI-themed tokens surged up to 35% in the past 24 hours, significantly outperforming the broader crypto market, which remained largely flat.
The growth in AI token prices mirrored a rise in Nvidia's stock, which became the most valuable company globally, highlighting the market's increasing interest in AI-related technologies.
Tokens of projects said to be using artificial intelligence (AI) technology surged as much as 35% in the past 24 hours, leading gains as a sector amid a little-changed broader crypto market.
Fetch.ai’s FET, SingularityNET’s AGIX, and Ocean Protocol’s OCEAN led growth in the AI token sector, CoinGecko data shows, while the sector added 15% on average. Tokens above a $100 million capitalization added a minimum of 4% – beating a 0.22% rise in the broad-based CoinDesk 20 (CD20) index.
Such growth mirrored a surge in chipmaker Nvidia’s (NVIDIA) stocks, whose 5% surge since Monday made it the most valuable company in the world, surpassing Microsoft. Nvidia is not directly related to any crypto companies, but growth in its stock prices tends to move AI-related tokens.
AI broadly refers to the simulation of human intelligence in machines programmed to think and act like humans. Since early 2023, traders have predicted the sector to lead gains in the next crypto market, and the hopes have been accurate so far.
"AI as a sector is hot in both traditional markets and crypto,” Edward Wilson, analyst at Nansen.ai told CoinDesk in a Telegram message Thursday. “It should come as no surprise that on the back of Nvidia becoming the world's most valuable company AI tokens are rallying.”
“Tokens such as NEAR and RNDR are up around 300% in the past year, compared to ETH at just over 100% during the same time period, showing high market interest in this sector,” he added.
Concerns about the true usage of complex AI technology in blockchain projects remain among some researchers, however.