News
The AI sector is gaining traction within the crypto community
Blockchain analytics firm Santiment reports that crypto projects focused on artificial intelligence (AI) could see a rise in token prices due to growing social interest.
Data from CoinMarketCap confirms this record interest. Trading volumes of digital assets in the AI sector have increased by around 80% in the past day, despite the average sector decline of 7%.
What drives social interest in AI tokens?
The increase in community interest is in line with significant advances in the field of artificial intelligence. In particular, Nvidia briefly became the second most valuable company in the world publicly traded company with a market value exceeding $3 trillion. During this time, Bloomberg ETF analyst Eric Balchunas noticed that Nvidia shares reached record trading levels, often exceeding the combined volume of the top 20 U.S. stocks.
To know more: 9 Best AI Stocks to Buy in 2024
NVIDIA stock performance. Source: X/Eric Balchunas
Although Nvidia’s stock has fallen since then, the company remains an investor poster child enthusiasm for artificial intelligence. Venture capitalist Nic Carter recently described the company as “the most valuable company in the world today.”
“NVIDIA is experiencing growth numbers that are almost inconceivable for a company of this size. The rally is so significant that it appears to be sucking capital away from the rest of the SP500 and other big tech names,” Carter added.
In another noteworthy development, AI startup CoreWeave Inc. has made an ambitious attempt to take over Bitcoin miner Core Scientific after the two companies announced a partnership aimed at generate approximately $3.5 billion in revenue. Under this agreement, Core Scientific will provide 200 megawatts of capacity to power CoreWeave’s graphics processing units.
Also, decentralized AI projects Recover.ai (FET), Ocean Protocol (OCEAN) and SingularityNET (AGIX) are planning a merger to form the Alliance for Artificial Superintelligence (ASI). This merger aims to accelerate the development of decentralized AI infrastructure and will be completed this month. The combined entity will create a token with an estimated market capitalization of approximately $6 billion, further attracting community interest.
To know more: Top 9 Artificial Intelligence (AI) Cryptocurrencies in 2024
While the events highlighted are separate and distinct, they highlight why AI tokens generated an increase in social volume during the week. Historically, such a level of interest often precedes price increases, and experts in the crypto community predict this Project tokens focused on artificial intelligence could benefit from it.
Disclaimer
In compliance with Trust Project guidelines, BeInCrypto is committed to providing impartial and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently verify the facts and consult a professional before making any decisions based on this content. Please note that our Terms and conditions, Privacy PolicyAND Disclaimer They have been updated.