AI cryptocurrencies up after Nvidia reports high AI demand

Crypto traders got a sentiment uplift from the rally in the S&P 500 and Nasdaq Composite, led by Nvidia, which issued astounding sales guidance late Wednesday

Artificial Intelligence-themed crypto currencies got a boost Thursday from enthusiasm around Nvidia and its rising demand for chips that power Artificial Intelligence (AI) applications.

SingularityNET increased 19 per cent, as per CoinMarketCap, to 29 cents. Cortex increased 6 per cent to 17 cents and Measurable Data Token advanced 6.5 per cent to hit 4 cents a coin. All these tokens have a market cap of less than $40mln.

Fetch.ai, with a market cap of $195mln, added around 5 per cent to change hands at 23 cents.

In the meantime, majority of the rest of the crypto currency market, including bitcoin and ether, was flat.

AI crypto currencies refer to blockchain-based Artificial Intelligence projects’ corresponding tokens. For instance, Fetch.ai is dedicated to building infrastructure for “smart, autonomous services” in supply chain, finance, travel etc. Cortex aspires to be the “first decentralized world computer capable of running Artificial Intelligence and AI-powered dApps on the blockchain.”

Crypto traders got a sentiment uplift from the rally in the S&P 500 and Nasdaq Composite, led by Nvidia, which issued astonishing sales guidance late Wednesday and cited demand for Artificial Intelligence capabilities. Its estimated sales for Q2 of its fiscal 2024 were over 50 per cent higher than what experts had anticipated.

In a specific section of the technology world, some market participants have long believed Artificial Intelligence can benefit from blockchain technology and possibly be a positive impetus for the crypto market in general. Particularly, as Artificial Intelligence gets smarter and better at manipulating people’s identities on the internet, blockchain technology could possibly assist using its ability to deploy digital identity solutions at scale.

That could be a long way down the road, nevertheless, as both the technologies are still in their early days.