Expectations that a crypto project will be mentioned in an Nvidia (NVDA) conference later this month are driving traders to bid on artificial intelligence (AI)-linked tokens, propelling CoinGecko ‘s category for the coins up 25% in 24 hours.
Tokens of Fetch.AI (FET), Render Network (RNDR), Sleepless AI (AI) and SingularityNET (AGIX) climbed as much as 40%. These projects claim to utilize AI in various ways, such as providing a virtual companion and being a marketplace for graphic processing cards.
Behind the surge are reports that crypto AI project developers are attending the chipmaker’s conference or taking part in panels, according to Lookonchain. The event will be held from March 17-21. The advance compares with bitcoin’s 0.3% increase and a 0.4% gain in the CoinDesk 20, a broad-based liquid index of major tokens.
AI tokens remain a hot narrative for crypto traders because the technology is expected to drive key innovations in the küresel economy in the coming years. However, the relationship between AI and crypto is unclear: Artifical intelligence cannot run on a blockchain. Even so, developments in traditional AI companies, such as OpenAI, drive gains in AI tokens as traders utilize them as a proxy bet on the industry.
The tokens also rallied last month after Nvidia beat fourth-quarter earnings and first-quarter guidance expectations.
Meanwhile, the inflows into AI tokens seem to have put the brakes on a multiweek rally for göğüs coins, veri shows.
Tokens such as dogecoin (DOGE), pepecoin (PEPE) and dogwifhat (WIF) have more than doubled over the past few weeks as bitcoin briefly broke its all-time highs. Some observers attributed the surge to göğüs coins being more friendly to retail traders, who are typically driven to crypto markets during bitcoin rallies.
The rally seems to be done for now. DOGE, SHIB and PEPE lost over 15% in the past 24 hours, veri shows. And in another sign of money leaving the market, open interest on DOGE-tracked futures has dropped $400 million from record highs since Tuesday.