AI-themed tokens have experienced a remarkable surge, with prices rising up to 35% in the past 24 hours. This significant increase contrasts sharply with the broader crypto market, which remained largely flat during the same period.
Key Drivers of AI Token Growth
The spike in AI token prices mirrors a notable rise in Nvidia’s stock. Nvidia, a leading chipmaker, saw its stock surge by 5% since Monday, making it the most valuable company globally, surpassing Microsoft. Although Nvidia is not directly related to any cryptocurrency companies, its growth often positively influences AI-related tokens due to its prominent role in the AI technology sector.
Leading AI Tokens
Several AI-linked tokens led the growth within this sector:
• Fetch.ai’s FET
• SingularityNET’s AGIX
• Ocean Protocol’s OCEAN
These tokens contributed to the AI token sector’s average gain of 15%. Notably, tokens with a market capitalization above $100 million saw a minimum increase of 4%, significantly outperforming the broader crypto market, which only rose by 0.22%.
AI Sector’s Market Potential
Edward Wilson, an analyst at Nansen.ai, emphasized the growing interest in AI within both traditional markets and the crypto space. “AI as a sector is hot in both traditional markets and crypto,” Wilson stated. “It should come as no surprise that on the back of Nvidia becoming the world’s most valuable company AI tokens are rallying.”
Wilson also highlighted the impressive performance of certain AI tokens over the past year. “Tokens such as NEAR and RNDR are up around 300% in the past year, compared to ETH at just over 100% during the same time period, showing high market interest in this sector,” he added.
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Ongoing Skepticism and Future Outlook
Despite the impressive gains, some researchers remain skeptical about the true application of complex AI technology in blockchain projects. Concerns persist regarding whether these projects genuinely utilize advanced AI or merely capitalize on the AI hype to attract investors.
The recent surge in AI-linked tokens underscores the market’s increasing interest in AI-related technologies. As Nvidia’s stock continues to rise, it is likely to further influence the growth of AI tokens. However, the sector must address ongoing skepticism about the actual use of AI in blockchain to maintain investor confidence and sustain growth.
