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Synergies between the digital asset space and artificial intelligence continue to emerge as the stock price boost for tech giant Nvidia Corporation — on the back of an AI chip boom — sends AI-related cryptocurrencies on a surge.
Fast facts
- AI-themed cryptocurrencies have gone on a surge this week due to the increased demand for AI chips from Nvidia.
- The chips power generative AI, the kind that responds to user requests for text and image creation. Demand for the chips has seen Nvidia’s stock price soar by 28%.
- FET — which has a market capitalization of US$193 million — is the native currency of AI-powered blockchain platform Fetch.ai. It gained 4.13% over the past 24 hours.
- Similarly, SingularityNET, the native coin of the decentralized AI marketplace SingularityNET, rose 9% over the past day.
- Elsewhere, Render Token, the native coin of GPU-based rendering platform Render Network, also added 3.31%.
- Nvidia’s strong sales figures and an associated rally Thursday in the S&P 500 and Nasdaq Composite appears to have boosted sentiment among crypto traders.
- Blockchain technology has the potential to benefit AI projects by providing digital identity solutions at scale.
- The positive market reaction to Nvidia’s news may also encourage more cryptocurrency mining companies to apply their data serving space to profitable areas of AI computing, at least until the current bear market is over.
- However, for that to happen, miners will need to diversify their business operations by investing in infrastructure and personnel that can be adapted for AI applications.