The crypto market has witnessed significant gains in AI-based cryptocurrencies, surpassing other assets in terms of performance. Chipmaker Nvidia, known for its investments in the AI sector, has reached an all-time high in its stock price, leading to the positive movement of these crypto tokens. The recent data from Coingecko reveals double-digit gains for Render (RNDR) and Akash Network in the last 24 hours and the previous week, with Render recording a 6% profit and Akash Network gaining 10%.
According to a report by Sarson Funds, there is a strong correlation between crypto AI tokens and Nvidia. Nvidia has played a significant role in spearheading the AI trend in the legacy financial sector, which has sparked interest in this technology. As a result, the performance of AI crypto tokens is closely tied to Nvidia’s stock price. Sarson Funds emphasized that AI-powered cryptocurrencies are responding positively to Nvidia’s stellar Q2 earnings, exceeding expectations with $13.51B in sales and $2.70 EPS. Notably, upon Nvidia’s announcement, Render Network gained 8%, Singularity NET gained 9.9%, and Fetch gained 8.7%.
The fate of crypto tokens seems to be highly dependent on Nvidia’s future performance. The significant gains in Nvidia’s stock price were driven by better-than-expected results in its quarterly report, and this momentum is expected to continue in the coming months. The company’s recent report indicates that AI chip sales will accelerate, leading to increased revenue for Nvidia and potentially impacting the crypto sector. Moreover, other tech giants are also embracing AI, reinforcing the belief that this technology will unlock further gains.
Nvidia’s CFO, Colette Kress, expressed optimism about the coming months, stating that there is tremendous demand for Nvidia’s accelerated computing and AI platforms. The company’s supply partners have been ramping up capacity to meet these needs, and they anticipate an increase in supply each quarter through next year. The strongest data center growth is observed in the U.S. as customers direct their capital investments toward AI and accelerated computing.
Given the projected growth of Nvidia and its impact on the AI sector, crypto traders are increasingly using Nvidia as a proxy to gauge the performance of AI crypto tokens. If the forecasts for Nvidia are accurate, with its stock price expected to double by the end of the year, it raises the question of how AI crypto tokens will fare in the same period. This correlation highlights the interdependence between the developments in the AI sector and the performance of cryptocurrencies specifically designed for AI applications.
AI-based cryptocurrencies have exhibited strong performance, outperforming other assets, thanks to the advancements in the AI sector and the significant gains in Nvidia’s stock price. As Nvidia continues to thrive and expand its AI chip sales, the future of AI crypto tokens appears promising. Investors and traders alike are closely monitoring Nvidia’s performance as a proxy for gauging the potential of AI crypto tokens. The correlation between the two reinforces the notion that the fate of these tokens is inherently connected to the growth and success of AI technology.