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Blockchain analytics firm Santiment reports that crypto projects focused on artificial intelligence (AI) might see a rise in token prices due to growing social interest.
CoinMarketCap data corroborates this record-high interest. Trading volumes of digital assets in the AI sector have risen by about 80% in the past day despite the sector’s average decline of 7%.
What is Driving Social Interest in AI Tokens?
The surge in community interest aligns with significant advancements in the AI sector. Notably, Nvidia briefly became the world’s second most valuable publicly traded company, with its market value surpassing $3 trillion. During this period, Bloomberg ETF analyst Eric Balchunas noted that Nvidia’s shares reached record trading levels, often surpassing the combined volume of the top 20 US shares.
Read more: 9 Best Artificial Intelligence Stocks To Buy in 2024
Although Nvidia’s stock has since pulled back, the company remains a symbol of investor enthusiasm for AI. Venture capitalist Nic Carter recently described the company as “the most important company in the world today.”
“NVIDIA is posting growth numbers that are almost inconceivable for a company this large. The rally is so significant it appears to be sucking capital out of the rest of the SP500 and other big tech names,” Carter added.
In another noteworthy development, AI startup CoreWeave Inc. made an ambitious attempt to take over Bitcoin miner Core Scientific after the two companies had announced a partnership projected to generate approximately $3.5 billion in revenue. Under this arrangement, Core Scientific will provide 200 megawatts of capacity to power CoreWeave’s graphics processing units.
Additionally, decentralized AI projects Fetch.ai (FET), Ocean Protocol (OCEAN), and SingularityNET (AGIX) are planning a merger to form the Artificial Superintelligence Alliance (ASI). This merger aims to accelerate the development of decentralized AI infrastructure and is set to be completed this month. The combined entity will create a token with an estimated market capitalization of around $6 billion, further drawing community interest.
Read more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
While the highlighted events are separate and distinct, they underline why AI tokens have generated heightened social volume during the week. Historically, such a level of interest often precedes price gains, and crypto community experts predict that AI-focused project tokens could benefit.