AI tokens surge 15% as Nvidia beats Microsoft
The surge in Artificial Intelligence (AI) tokens has been remarkable, with the sector’s overall valuation nearly hitting $28 billion following a 15% increase over the last 24 hours, as per CoinGecko's figures.
Tokens such as Fetch.ai (FET), which facilitates an AI-driven blockchain for sophisticated machine learning tasks, and Render (RNDR), the digital currency for a decentralized GPU rendering network, are at the forefront of this surge. In a single day, FET's value skyrocketed by 30% and saw a 40% rise over the month. Meanwhile, RNDR showcased a more subdued performance, with a 2.3% rise in the same timeframe and a nearly 30% increase over the month.
A significant driver of this momentum is Nvidia, leading a plethora of AI projects with its specialized chips. The company’s stock has witnessed a staggering ascent, more than doubling since the beginning of the year, fueled by the intense demand for its AI-dedicated chips.
This boost from Nvidia is trickling down into the cryptocurrency domain, benefiting AI-centered blockchain initiatives that depend on GPU technologies.
For instance, Fetch.ai leverages machine learning algorithms to facilitate autonomous economic agents, calling for substantial computational resources. In a similar vein, Render’s platform capitalizes on unused GPU resources to enable high-quality rendering capabilities for video games and digital media.
The excitement around AI tokens extends beyond specific projects. Other noteworthy contributors to this surge include Ocean Protocol (OCEAN), a decentralized protocol for AI training data exchange, and SingularityNET (AGIX), a marketplace for AI services development and monetization.
Fetch.ai, Ocean Protocol, and SingularityNET were slated for a collaborative token merger this month to form the Artificial Super Intelligence Alliance and introduce an ASI token. However, the merger has been postponed due to technical hurdles.
AI tokens carve out a distinct niche within the cryptocurrency sphere, aimed at empowering decentralized networks and applications that utilize AI and machine learning. These tokens typically act as a financial incentive for the AI ecosystems, rewarding contributions of data, computational resources, or AI algorithms.
The potential for AI is vast, with implications for healthcare, finance, media, and more. AI is swiftly becoming a cornerstone technology, poised to transform virtually every aspect of our daily lives and the broader economy in the foreseeable future.
Blockchain initiatives are vying for a significant role in the AI evolution, facilitating secure data exchange, decentralized computing, and innovative economic frameworks. The current exhilaration around AI tokens illustrates the recognized potential of merging AI with blockchain technology.
