Crypto News- AI crypto tokens are experiencing significant gains, reflecting the overwhelmingly positive sentiment surrounding AI in the crypto sector. CoinGecko’s recent research has highlighted AI as the most popular narrative in the crypto space for 2023, and this optimism continues to fuel the market in 2024.
Major AI-related tokens, many of which belong to the top 100 cryptocurrencies by market capitalization, have seen remarkable surges in the past week. Some have surged by more than 25%, while others, like Arkham’s ARKM token, have more than doubled in price within the same period. The Graph (GRT), currently ranked 42nd in market cap, has seen an impressive gain of almost 60% this week, briefly surpassing the $0.27 mark before a slight retracement.
Revival of AI Token Speculation Amid Surging Tech Stock Market
Despite these substantial gains, GRT is still nearly 90% down from its all-time high of $2.50 during the 2021 crypto bull run. Another notable mover is Render (RNDR), which entered the top 50 cryptocurrencies in late 2023 after a remarkable 1,100% gain for the year. Although RNDR reached an all-time high near $7.50 in November 2021, it quickly plummeted to $0.40 during the subsequent bear market. Currently trading at $6.20, RNDR is inching closer to setting a new all-time high milestone, being almost 15% away.
Lift from Traditional Financial Markets
The surge in AI tokens is also attributed to the performance of major players in traditional finance, such as Nvidia (NVDA) and Super Micro Computer Inc (SMCI), which are driving a ripple effect in the market. Nvidia’s shares have surged by over 46% since the start of the year, outpacing its peers and significantly contributing to the S&P 500’s overall growth.
Keith Lerner from Truist Advisory Services emphasizes the pivotal role of Nvidia, stating, “When people say that the market is doing well this year, they really mean that tech is doing well, and Nvidia is at the core of that.” The upcoming earnings report from Nvidia on February 21 is eagerly anticipated, with Wall Street expecting substantial earnings and revenue growth.
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