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AI crypto tokens rally after Nvidia's record gains

President and CEO of Nvidia Corporation Jensen Huang delivers a speech during the Computex 2024 exhibition in Taipei, Taiwan, Sunday, June 2, 2024. (AP Photo/Chiang Ying-ying)
AI crypto tokens rally after Nvidia posts record gains. (Chiang Ying-ying, Associated Press)

AI-related cryptocurrency tokens have rallied in the past 24 hours, outperforming major digital assets, such as bitcoin (BTC-USD) and ether (ETH-USD). The artificial intelligence token market cap has increased by over 14%, to now stand at $29.9bn (£23.55bn), according to Coingecko data.

The rally comes in the wake of Nvidia (NVDA) becoming the world's most valuable company, as Wall Street investors get into artificial intelligence chip stocks.

According to the Coingecko, the top five AI crypto tokens by market cap have all rallied in the past 24 hours. Fetch.ai (FET-USD) saw the largest rise of over 30%, Bittensor (TAO) climbed by over 5%, Render (RNDR-USD) jumped by over 4%, while NEAR Protocol (NEAR-USD) and Internet Computer (ICP-USD) saw gains of 5% and 6%, respectively.

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Other AI-related crypto tokens that sit just outside the top five by market cap, such as SingularityNET (AGIX-USD) and Ocean Protocol (OCEAN-USD) rallied over 26% and 23% respectively.

Read more: Sovereign agents: Your own personal AI assistant? | The Crypto Mile

In contrast to the uptick in the AI-related token category, major cryptocurrencies, such as bitcoin, ether and solana, have traded either flat or down. Bitcoin has retraced recent gains to fall to levels not seen since mid-May, trading up slightly over the past day to now change hands for $65,800.

Other crypto tokens, such as ether increased 1.7%, however, solana (SOL-USD) fell 2.7% in the same period, according to Coingecko data.

Chipmaker Nvidia was listed as the world’s most valuable company after its share price climbed to an all-time high on Tuesday.

Its remarkable growth can be attributed to its graphics chips (GPUs) designed for processing artificial intelligence workloads in data centres.

Read more: Can AI revitalise the metaverse?

With a market capitalisation now exceeding $3.3tn, Nvidia's stock has nearly doubled since the beginning of 2024. Nvidia shares closed the Wednesday session at $135.58, up 3% in the days trading. The chipmakers market capitalisation has now surpassed that of Microsoft (MSFT), Apple (AAPL) and Amazon (AMZN).

AI-related tokens are a subset of cryptocurrencies designed to leverage artificial intelligence technologies within their ecosystems. These tokens are typically used to power platforms and applications that integrate AI to enhance functionality, improve decision-making processes, and automate various tasks.

Check: Crypto live prices

AI-related tokens can be associated with projects focusing on machine learning, data analysis, and decentralised AI networks, offering unique use cases that distinguish them from more traditional cryptocurrencies like bitcoin and ether.

Read more: This AI tool ‘threatens human creativity’ and the art world is worried

For example, Fetch.ai utilises AI to create decentralised autonomous agents for various industries, while SingularityNET aims to build a decentralised AI marketplace where algorithms can be bought and sold.

These tokens not only facilitate transactions within their respective platforms but also provide holders with governance rights and access to advanced AI-driven services. As the integration of AI technology continues to grow, AI-related tokens represent a promising area within the cryptocurrency market, attracting increasing attention from investors and developers alike.

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