AI-related crypto tokens have seen a significant surge in value following Nvidia’s impressive earnings call. The market capitalization for artificial intelligence (AI) tokens now stands at $17.4 billion, marking a 6.6% increase in the last 24 hours. This surge in value has outperformed the general crypto market, which has only risen by 1.3% during the same period.
Tokens associated with AI projects such as Fetch.ai, Singularity.net, and Render have all experienced gains in the past 24 hours. Singularity.net’s AGIX token surged by over 38%, Fetch.ai’s FET token saw an increase of almost 14%, and Render’s RNDR token experienced a rise of over 20%. These tokens power various AI-related projects, including AI-powered portfolio management, image generation, pathfinding, and more. Holders of AI tokens may have governance rights on specific platforms or need them to pay for transactions on these platforms.
The surge in AI-related cryptocurrencies comes on the heels of Nvidia’s fourth-quarter earnings report, which exceeded analysts’ expectations. Nvidia reported adjusted earnings per share of $5.16 on revenue of $22.1 billion, surpassing the anticipated earnings per share of $4.60 on revenue of $20.4 billion. Following the report, Nvidia’s shares were up more than 5%, although they closed down 2.5% to $674.72.
Nvidia CEO Jensen Huang attributed the company’s success to the increasing demand for accelerated computing and generative AI worldwide. This positive outlook from Nvidia has likely contributed to the rally in AI-related crypto tokens.
In addition to the surge in AI tokens, the price of Bitcoin has remained above the $51,000 mark for over a week. This stability has been driven by increased allocations from fund managers like BlackRock and Franklin Templeton into various exchange-traded funds (ETFs). The US Securities and Exchange Commission recently approved the first US-listed ETFs to track Bitcoin in January, potentially opening the floodgates for mainstream capital into the crypto market.
Despite the overall positive trend, there has been some price volatility in the crypto market, leading to the liquidation of more than $122 million in long positions in the past 24 hours. Bitcoin’s price stood at $51,806 at the time of writing, with over $21 million in long positions liquidated. This volatility has contributed to a total of $189 million in liquidations across major cryptocurrency exchanges.
Overall, the surge in AI-related crypto tokens following Nvidia’s earnings call highlights the growing interest and investment in artificial intelligence projects within the cryptocurrency ecosystem. As both sectors continue to evolve and innovate, investors will likely keep a close eye on developments in AI technology and its impact on the market.
