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- Nvidia’s recent market cap growth has pushed several AI-focused crypto tokens.
- AI tokens like Fetch.ai, Bittensor, Render, and NEAR saw significant increases.
Several AI-focused cryptocurrencies have posted double-digit gains, driven by Nvidia’s recent achievement of surpassing Apple in market capitalization. Nvidia, a leading company in AI technology and chip production, regained its title as the largest publicly traded company, which boosted the sentiment in the AI-based cryptocurrency market.
Nvidia Surpasses Apple, Boosting AI Token Performance
Nvidia saw its stock price increase by 2.84%, pushing its market capitalization to $3.43 trillion, a distance of $53 billion from Apple’s $3.38 trillion and $370 billion from Microsoft’s $3.06 trillion. Nvidia’s stock has risen by more than 190% in 2023 due to the rising demand for its powerful GPUs, including the H100 and the future H200 series. These GPUs are essential in machine learning as well as generative AI, meaning that Nvidia is the central support structure of the AI industry.
Other tokens that recorded gains include Fetch.ai (FET), Bittensor (TAO), Render (RNDR), and NEAR Protocol (NEAR), among others, in the aftermath of Nvidia’s rally. FET rose 21.8%, with Bittensor spiking 19.4% and revisiting levels last seen in October. All the tokens nosed upwards, with Render and NEAR up by 11.97% and 9.08% in that order. According to the data from CoinGecko, the overall market capitalization of AI tokens increased by 16.8% within the last 24 hours and is now at $28.5 billion.
The market capitalization of 337 tokens linked to AI technology increased by 11.56% to $33.2 billion, with the trading volume reaching $2.99 billion, compared to a 108% rise within one day. Analysts estimate that this market could get to $100 billion by 2025, which means that the growth rates are rather high.
AI Market Reactions to Nvidia’s Milestones
This rally among AI tokens is a continuation of a trend in which AI crypto assets benefit from Nvidia’s progress. In the past few months, Nvidia’s collaborations and strategic actions, such as the one with Alibaba Cloud that happened in September, have also caused such surges. Clore AI, another blockchain project that is associated with GPU leasing, also received a positive impact from the recent rise of Nvidia’s stock in the market this month.
Investors have usually reacted positively to Nvidia’s results, perceiving the company’s results as an indication of an emerging market for AI technology. The latest rally comes just as Nvidia is set to replace Intel in the Dow Jones Industrial Average on November 8th, indicating the company’s ascendancy over traditional silicon makers. This could further strengthen NVDA’s position in the AI market and may very well result in favourable market sentiment for other AI-related tokens.
The recent rally of Bitcoin, which hit an all-time high of $75,358, has also brought new strength to the cryptocurrency market, boosting the performance of all AI tokens. The rally in Bitcoin is helping to bolster the mood in digital assets and is supporting the bullish trend in AI crypto assets, while Nvidia’s successes are also lending support.
