AI cryptocurrencies surge after Nvidia signals demand

AI-themed cryptocurrencies were boosted by the excitement around Thursday Nvidia and its growing demand for chips that power artificial intelligence applications.

SingularityNET (AGIX) rose 19%, according to CoinMarketCap, to 29 cents. Cortex (CTXC) rose 6% to 17 cents and Measurable Data Token (MDT) added 6.5% to 4 cents a coin. All of these tokens have a market capitalization below $40 million.

Fetch.ai (FET), with a market cap of $195 million, gained nearly 5% to trade at 23 cents.

Meanwhile, most of the rest of the cryptocurrency market, including bitcoin and ether, was flat.

AI cryptocurrencies refer to the corresponding tokens of blockchain-based AI projects. For example, Fetch.ai is dedicated to building infrastructure for “smart, self-driving services” in supply chain, finance, travel and more. Cortex aims to be the “world’s first decentralized computer capable of running AI and AI-powered dApps on the blockchain”.

Crypto Traders Received a Sentiment Boost from the Market Rally S&P500 And Nasdaq Compound, driven by Nvidia, which released a stunning sales forecast on Wednesday night and cited demand for AI capabilities. Its projected sales for the second quarter of its fiscal year 2024 were more than 50% higher than analysts had expected.

In a certain pocket of the tech world, some market players have long believed that the Wild West of AI can benefit from blockchain technology and potentially be a positive catalyst for the crypto market as a whole. Specifically, as AI becomes smarter and improves the manipulation of people’s identities on the Internet, blockchain technology could potentially help use its ability to deploy digital identity solutions at scale.

That could be a long way to go, though, as it’s still early days for both technologies.

Bitcoin And ether hovered around the flatline on Thursday as investors remained focused on ongoing debt ceiling negotiations ahead of an extended holiday weekend. Minutes from the Federal Reserve’s latest meeting, released on Wednesday, also showed officials are divided on what the central bank’s next move on interest rate hikes should be.