AI-Based Crypto Tokens and Stocks Thrive Amidst Market Correction, Bolstered by Nvidia's Success
Summary:
AI-based crypto tokens and common stocks showed significant growth on February 21, despite a broader market correction. Prominent AI-based tokens such as Render (RNDR), The Graph (GRT), Fetch.AI (FET) and SingularityNet (AGIX) posted double-digit gains. AI crypto market growth followed Nvidia’s successful quarterly earnings report, and AI token market capitalization jumped from $7 billion to $17 billion within this month. Nvidia’s growth also positively affected several AI-centered stocks, contributing to their record new highs.
A variety of cryptocurrency tokens based on artificial intelligence (AI) and common shares witnessed promising growth on February 21, even amidst widespread market adjustments. Popular AI-driven crypto tokens observed growth percentages in double digits after their combined market capitalization more than doubled in just a month.
Render (RNDR), a decentralized GPU rendering network operating on the Ethereum basis, saw an impressive jump of over 17% in the last day. Concurrently, blockchain data indexing protocol, The Graph (GRT) appreciated by 18% over the same period. Fetch.AI (FET) advanced by 11%, while SingularityNet (AGIX) achieved a stunning 33% daily raise.
Source: Coingecko discloses a surge in AI crypto token price momentum. The total market capitalization of AI-driven tokens skyrocketed by above 9% to $17.8 billion following Nvidia’s quarterly revenue results. AI token market capitalization expanded from $7 billion to $17 billion within this month.
Boosting AI tokens was a recent earnings report from Nvidia, but these tokens have been gaining traction since last week. They reached their highest weekly trade volume in a year following the announcement of a text-to-video tool by OpenAI.
Source: Kaiko depicts AI tokens weekly volume. The positive market development of AI tokens has been linked to Nvidia’s superior fourth-quarter earnings report, which exceeded market expectations. The tech giant reported revenues of $22.1 billion, surpassing Wall Street’s prediction of $20.4 billion. Nvidia’s AI data center revenue multiplied fivefold in the January quarter compared to the previous year.
Nvidia CEO Jensen Huang attributed the surge in sales and revenue to the increasing global demand for generative AI. The tech company has a market capitalization of $1.67 trillion and has supplanted Tesla as the most traded stock worldwide.
Nvidia's thriving AI enterprises had a positive ripple effect on the AI crypto market and contributed to several AI-centric stocks achieving new peaks. On February 21, the shares of Nvidia supplier and the world's largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), escalated by a maximum of 2.05% during morning trading. Similarly, after-hours trading on February 20 saw an 11.42% increase in shares of server component supplier Super Micro Computer. Dutch chip equipment manufacturer ASML enjoyed a 2.7% augmentation during after-hours trading.
Published At
2/22/2024 12:40:55 PM
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