The excitement around Nvidia and its rising demand for processors that enable artificial intelligence applications gave cryptocurrencies with an AI focus a boost on Thursday.
According to CoinMarketCap, SingularityNET (AGIX) increased as much as 19% to 29 cents. Measurable Data Token (MDT) increased 6.5% to 4 cents per coin, while Cortex (CTXC) increased 6% to 17 cents. The market capitalization of each of these coins is less than $40 million. With a $195 million market valuation, Fetch.ai (FET) increased by over 5% to trade at 23 cents.
The majority of the other part of the cryptocurrency market, including ether and bitcoin, was flat in the interim.
The related tokens for blockchain-based AI initiatives are referred to as “AI cryptocurrencies”. For instance, Fetch.ai is committed to developing the framework for “smart, autonomous services” in supply chain, finance and other areas. The mission of Cortex is to be the “first decentralized world computer capable of running AI and AI-powered Apps on the blockchain.”
The jump in the S&P 500 and Nasdaq Composite, which was driven by Nvidia, which released astonishing sales projections late on Wednesday and cited demand for AI capabilities, gave cryptocurrency traders more confidence. Analyst expectations for its forecasted sales for the second quarter of its fiscal 2024 were outperformed by more than 50%.
Some market participants in a particular sector of the technology industry have long argued that blockchain technology may help the wild west of AI and perhaps act as a beneficial accelerator for the crypto market as a whole. In particular, leveraging its capacity to scale the deployment of digital identity solutions, blockchain technology may be able to assist as AI becomes smarter and better at influencing people’s identities on the internet. But given that both technologies are still in their infancy, it may be a long way off.
As investors continued to pay attention to the continuing debt ceiling talks as we approached a long holiday weekend, bitcoin and ether on Thursday traded in a range close to the flat line. Officials disagree about the Federal Reserve’s future course of action regarding interest rate increase, according to the most recent meeting, which were published on Wednesday.