AI-Driven Cryptocurrencies experienced a boost in value on Thursday due to the excitement surrounding Nvidia and its growing demand for chips used in artificial intelligence applications.
SingularityNET (AGIX) saw a rise of up to 19% to 29 cents, Cortex (CTXC) increased by 6% to 17 cents, and Measurable Data Token (MDT) gained 6.5% to reach 4 cents per coin.
These tokens have market caps below $40 million. Fetch.ai (FET), with a market cap of $195 million, also saw a nearly 5% gain, trading at 23 cents. In contrast, other cryptocurrencies like bitcoin and ether remained relatively stable.
The Potential Synergy Between AI-driven Cryptocurrencies and Blockchain Technology
AI cryptocurrencies refer to tokens associated with blockchain-based AI projects.
For instance, Fetch.ai focuses on building infrastructure for smart, autonomous services in various sectors, including supply chain, finance, and travel. Cortex aims to be the first decentralised world computer capable of running AI and AI-powered decentralised applications on the blockchain.
The rally in the S&P 500 and Nasdaq Composite, driven by Nvidia’s impressive sales guidance, provided a positive sentiment for crypto traders.
Nvidia highlighted the increasing demand for AI capabilities, which contributed to projected second-quarter sales for fiscal year 2024 that were more than 50% higher than analysts’ expectations.
Bitcoin and Ether Maintain Stability Amidst Other Market Factors
In certain technology circles, there has been a belief that the combination of AI and blockchain technology could have a positive impact on the crypto market.
Blockchain’s potential to deploy scalable digital identity solutions could be beneficial in addressing AI’s ability to manipulate online identities. However, it is still early days for both technologies, and significant progress is needed.
Bitcoin and ether remained relatively stable on Thursday, as investors focused on ongoing debt ceiling negotiations and the release of minutes from the recent Federal Reserve meeting, which revealed divided opinions on future interest rate hikes.
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