AI robot side face by particle shape.
Yuichiro Chino | time | Getty Images
AI themed cryptocurrencies had a Thursday lift of excitement around 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. Cortext 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 rally in the S&P500 And Nasdaq Compounddriven by Nvidia, which issued amazing sales tips late Wednesday and cited the 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 participants 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 continuing debt ceiling negotiations before a long holiday weekend. THE minutes of the last meeting of the Federal Reservereleased on Wednesday also showed officials are divided on what the central bank’s next move on interest rate hikes should be.