- AI cryptocurrencies refer to tokens that correspond to blockchain-based AI projects.
- Cryptocurrency traders were buoyed by gains in the S&P 500 and Nasdaq Composite Index led by Nvidia.
- Bitcoin and Ether traded near the flatline on Thursday.
Yuichiro Chino | Moment | Getty Images
AI-themed cryptocurrencies rose Thursday on excitement surrounding Nvidia and growing demand for the company’s chips that power artificial intelligence applications.
SingularityNET (AGIX) rose as much as 19% to 29 cents, according to CoinMarketCap. Cortex (CTXC) rose 6% to 17 cents and Measurable Data Token (MDT) rose 6.5% to 4 cents per coin. All these tokens have a market capitalization of less than $40 million.
Fetch.ai (FET), which has a market cap of $195 million, rose nearly 5% to trade at 23 cents.
Meanwhile, most of the rest of the crypto market, including Bitcoin and Ether, remained flat.
Nvidia, AI and other investment ideas
AI cryptocurrencies refer to tokens that correspond to blockchain-based AI projects. For example, Fetch.ai is dedicated to building infrastructure for “smart autonomous services” in the supply chain, finance, travel, etc. Cortex aims to become “the first decentralized world computer capable of running AI and AI-powered dApps on the blockchain.”
Cryptocurrency traders were buoyed by sentiment as the S&P 500 and Nasdaq Composite rose on the back of Nvidia, which announced a stunning sales outlook late Wednesday and cited demand for its AI capabilities. Revenue estimates for the second quarter of fiscal 2024 exceeded analyst estimates by more than 50%.
In some parts of the technology industry, some market participants have long believed that the AI frontier could also benefit from blockchain technology and could be a positive catalyst for the overall cryptocurrency market. Specifically, as AI becomes smarter and better at manipulating people’s identities on the internet, blockchain technology could help leverage the ability to deploy digital identity solutions at scale. There is a gender.
However, that could be a long way off, as both technologies are still in their early stages.
Bitcoin and Ether traded near sideways on Thursday as investors continued to focus on ongoing debt ceiling negotiations ahead of the long holiday weekend. The latest Federal Reserve minutes, released Wednesday, also revealed that officials are divided over what the central bank’s next action should be when it comes to raising interest rates.