Markets
These AI crypto tokens outperform beloved Nvidia stock’s 130% surge – DL News
- Nvidia hit a new all-time high on Tuesday.
- The trading volume of the AI token sector has increased by 2,500% over the past five months.
- At the same time, Binance has lost its dominance in AI tokens.
Nvidia is in tears.
The chipmaking company hit a new all-time high on Tuesday. Worth nearly $3 trillion, Nvidia has seen its stock rise 130% since January 1.
But that pales in comparison to some crypto projects involving artificial intelligence.
Outperforming Nvidia
Nvidia has risen almost twice as much as Bitcoin since the start of the year, but some crypto tokens associated with AI technology have kept pace with – and even outperformed – the company over the same period.
Fetch.AI soared over 200% and SingularityNET 190%.
Meanwhile, Akash Network and Render Network are both up around 120%. And Near Protocol, the industry laggard, still achieved an impressive 100% performance.
Despite this, the price correlation between AI tokens and Nvidia has remained relatively low after hitting a multi-month high in February, research firm Kaiko said.
In other words, while both are risky market plays, AI tokens haven’t necessarily been influenced by Nvidia’s price action of late.
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In fact, Worldcoin’s token WLD has been more closely correlated with Nvidia than the AI-adjacent tokens mentioned above.
And this despite the fact that World Currency presents itself as an identity protocol, not an AI project, although it is co-founded by Sam Altman, CEO of OpenAI.
At the same time, the sector’s weekly trading volume has soared 2,500%, from an all-time low of $300 million in 2023 to an average of $8 billion, according to Kaiko.
Binance Market Share
Binance – which was once the leading exchange for AI tokens – has seen much of its market share decline.
The crypto exchange, which handled more than 70% of the industry’s trading volume in early 2023, now controls only 39% of the market, Kaiko said.
According to Kaiko, the platforms that have benefited from the sector’s growth are exchanges based in the United States – mainly Coinbase – and South Korea.
Crypto market players
- Bitcoin is down around 1% over the past 24 hours to $67,849.
- Ethereum fell about 2% during the same period to around $3,815.
What we read
Tom Carreras is a markets correspondent for DL News. Do you have a tip on Bitcoin ETFs? Contact us at tcarreras@dlnews.com