AI-themed cryptocurrencies experienced a significant boost in value on Thursday, driven by the growing demand for artificial intelligence (AI) chips, particularly from Nvidia. This surge in interest propelled several tokens to notable gains, including SingularityNET (AGIX), Cortex (CTXC), Measurable Data Token (MDT), and Fetch.ai (FET).
SingularityNET (AGIX) witnessed an impressive rise of up to 19%, reaching 29 cents, according to CoinMarketCap. Cortex (CTXC) followed suit with a 6% increase, trading at 17 cents, while Measurable Data Token (MDT) climbed 6.5% to reach 4 cents per coin. Notably, all these tokens currently boast a market capitalization of under $40 million. Fetch.ai (FET), with a market cap of $195 million, also saw a substantial gain of nearly 5%, reaching 23 cents.
Meanwhile, major cryptocurrencies such as bitcoin and ether remained relatively stable, without experiencing significant fluctuations.
The term “AI cryptocurrencies” refers to tokens associated with blockchain-based AI projects. For instance, Fetch.ai focuses on constructing infrastructure for “smart, autonomous services” across various sectors, including supply chain, finance, and travel. Cortex aims to become the world’s first decentralized computer capable of executing AI and AI-powered decentralized applications (dApps) on the blockchain.
Crypto traders received a boost in sentiment from the rally in the S&P 500 and Nasdaq Composite, primarily driven by Nvidia’s exceptional sales guidance. The company’s robust projections for the second quarter of its fiscal year 2024 surpassed analyst expectations by over 50%. Nvidia cited the increasing demand for AI capabilities as a key driver behind its impressive performance.
Within certain circles of the technology industry, there has long been a belief that the intersection of AI and blockchain technology holds great potential. This marriage of the two fields could potentially benefit the crypto market as a whole. Blockchain’s ability to deploy scalable digital identity solutions may assist in addressing the challenges posed by AI’s growing proficiency in manipulating online identities. However, it is important to note that both technologies are still in their nascent stages and have a long way to go before achieving their full potential.
Bitcoin and Ether, the two dominant cryptocurrencies, experienced relatively stable trading on Thursday. Investor attention remained focused on ongoing debt ceiling negotiations as the market approached an extended holiday weekend. Additionally, the release of minutes from the recent Federal Reserve meeting on Wednesday highlighted divisions among officials regarding the central bank’s future moves regarding interest rate hikes.