AI token market cap hits $30.25 billion, driven by Nvidia’s gains

In this post:

  • Artificial intelligence-related cryptocurrency projects have seen their values rapidly increase during the past day.
  • The gains were led by the three projects planning to merge their native tokens for an Artificial Superintelligence project.
  • Nvidia wants to diversify its business to compete with industry mainstays like Amazon and Microsoft.

The market cap for AI-related crypto tokens increased by over 15% in the past 24 hours in response to gains made by artificial intelligence company Nvidia. With the chipmaker leapfrogging Microsoft to become the world’s most valuable company, blockchain projects focused on artificial intelligence have also seen increased interest in their tokens.

Also read: Qatar launches its CBDC project using DLT and AI technology

According to CoinGecko data, the market cap for AI-related tokens increased by 15.5% to reach $30.25 billion. Trading volume for these tokens has also increased, with the 24-hour volume now at $2.28 billion.

FET and AGIX lead gains among top AI tokens

FET benefited from the recent boom in AI tokens, increasing by 28% today. FET is the native token of Fetch.ai, a blockchain that focuses on machine learning. SingularityNET token AGIX also rose 26% within the same period, while Ocean Protocol’s OCEAN gained 24%.

In July, the three projects will merge to create an Artificial Superintelligence with one token, ASI. Other top AI tokens, such as Render (RNDR), Internet Protocol (ICP), The Graph (GRT), and Near Protocol (NEAR), also saw gains varying between 5% and 9%.

However, the largest gainers were lesser-known projects, such as AI image generator 2dai.io. Its token soared by 33% in the past day. The platform can generate up to 20-second videos and supports text and image-to-video conversions.

Nvidia continues to rise

Nvidia’s stock price reached an all-time high of about $136 on Tuesday, overtaking Microsoft as the most valuable public company globally with a market cap of $3.34 trillion. Experts now believe that the race to become the first $4 trillion company would be between Nvidia, Microsoft, and Apple.

Also read: Ilya Sutskever launches new AI company a month after leaving OpenAI

Nvidia’s gains underscore the strength of the AI frenzy, which started with OpenAI’s ChatGPT in 2022. While many initially believed this was a bubble, the NVDA value doubling so far this year suggests that interest in AI remains very high. The company now seems positioned to continue benefitting from demand for high-performing chips used in training AI models. It recently had a 1/10 stock split to make its shares more affordable for new buyers.

AI company Nvidia shares
Nvidia’s NVDA Shares Performance {Source: Tradingview)

Meanwhile, the company is diversifying its products to ensure it is not focused on hardware alone. Recent reports confirm that Nvidia is aggressively pushing into software and cloud services. This new venture means it could become a competitor to some of its biggest clients, such as Amazon and Microsoft. However, most of these companies are developing their own chips in-house to eventually reduce their dependence on Nvidia chips.

Disclaimer. The information provided is not trading advice. Cryptopolitan.com holds no liability for any investments made based on the information provided on this page. We strongly recommend independent research and/or consultation with a qualified professional before making any investment decisions.

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