Markets
The AI sector is gaining ground within the crypto community
Blockchain analytics firm Santiment reports that artificial intelligence (AI)-focused crypto projects could see token prices rise due to growing social interest.
Data from CoinMarketCap supports this record interest. Digital asset trading volumes in the AI sector increased by approximately 80% over the past day despite an average industry decline of 7%.
What is driving social interest in AI tokens?
The surge in community interest aligns with significant advancements in the AI sector. Notably, Nvidia briefly became the second most valuable in the world publicly traded company with a market value exceeding $3 trillion. During this period, Eric Balchunas, Bloomberg ETF analyst note that Nvidia shares hit record trading levels, often surpassing the combined volume of the top 20 U.S. stocks.
Learn more: 9 Best Artificial Intelligence Stocks to Buy in 2024
NVIDIA Stock Performance. Source: X/Éric Balchunas
Although Nvidia’s stock has since declined, the company remains an investor symbol enthusiasm for AI. Venture capitalist Nic Carter recently described the company as “the most valuable company in the world today.”
“NVIDIA is posting growth numbers that are almost inconceivable for a company of this size. The rally is so big that it appears to be sucking capital away from the rest of the SP500 and other big tech names,” Carter added.
In another notable development, AI startup CoreWeave Inc. has made an ambitious attempt to take over Bitcoin miner Core Scientific after the two companies announced a planned partnership for generate approximately $3.5 billion in revenue. Under the agreement, Core Scientific will provide 200 megawatts of capacity to power CoreWeave’s graphics processing units.
Additionally, decentralized AI projects Recover.ai (FET), Ocean Protocol (OCEAN) and SingularityNET (AGIX) are considering a merger to form the Artificial Superintelligence Alliance (ASI). This merger aims to accelerate the development of decentralized AI infrastructure and is expected to be completed this month. The combined entity will create a token with an estimated market capitalization of around $6 billion, further generating interest from the community.
Learn more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
While the events highlighted are distinct, they highlight why AI tokens generated increased social volume during the week. Historically, such a level of interest often precedes price gains, and crypto community experts predict that AI-focused project tokens could benefit from it.
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