AI Tokens Explodes As Nvidia's Earnings Approach

AI related cryptocurrencies were among the market's biggest weekly gainers following Nvidia's earnings reports that were released on Wednesday. According to CoinGecko data, the market capitalisation for AI tokens now stands at $17.4 billion, which is an increase of 6.6% in the last 24 hours. This sector of the cryptocurrency has outperformed the general crypto market, which has risen by only 1.3% in the past 24 hours.

AI Tokens associated with AI, like the Fetch.ai, Singularity.net, and Render, all recorded gains in the last 24 hours. Singularity.net's AGIX token surged by over 28%, Fetach.ai's FET token saw an increase of almost 14%, while Render soared 38%, rising as the third biggest gainer over the week.

AI tokens are cryptocurrencies that power AI related projects, such as AI powered portfolio management, image generation, path finding and more. AI tokens may give their holders governance rights on particular platforms, or they are needed to pay for transactions on these platforms. The surge in value of AI-related cryptocurrencies comes after Nvidia reported its fourth quarter earnings on Wednesday, that beating analysts' expectations.

Nvidia fourth quarter results

On Wednesday, Nvdia reported adjusted earnings per share of $5.16 on revenue of $22.1 billion. This exceeded the expectation of analysts that were anticipating earnings per share of $4.60 on revenue of $20.4 billion. Shares of Nvidia were up more than 5% following the report, but closed on Wednesday, down 2.5% to $6.74.72.

AI broadly refers to the simulation of human intelligence in machines programmed to think and act like humans. Since 2023, traders have predicted the sector to lead gains in the next crypto market, and the hopes have been accurate so far.

Experts believe that AI is a sector that is hot both in traditional and the crypto market, and many believe that Nvidia will become the world's most valuable company AI tokens are rallying.

Nvidia continues to drive AI earnings

Nvidia's influence on the AI token market is profound. As the company continues to dominate the AI hardware industry, it indirectly boosts the confidence of investors in AI driven cryptocurrencies, which are seen as part of the broader AI ecosystem.

This divergence between cryptocurrencies and AI themed tokens can be further attributed to the growing interest in the sector's innovation. Investors are increasingly looking at AI tokens as a new frontier, offering growth opportunities that blue chip cryptocurrencies are lacking. Additionally, as traditional cryptocurrencies face regulatory scrutiny and market saturation, investors are seeking new and innovative opportunities such as AI. The success of these tokens suggests that this rally is not just a short-term hype but could signal a more sustained interest in AI-driven cryptocurrencies.