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Amid an overall market downtrend, crypto assets based on artificial intelligence (AI) have exhibited substantial gains, fueled by the AI frenzy permeating the traditional finance and crypto markets.
This surge has been further augmented by the continuous rally of tech company Nvidia, which recently claimed the world’s most valuable company title, with its soaring share price reaching an all-time high.
Fetch.ai Rides Nvidia’s Success
Nvidia’s stock, now valued at $3.34 trillion, has nearly doubled in price since the beginning of the year, surpassing the likes of tech giants Microsoft and Apple.
This rise has been attributed to Nvidia’s dominance in providing the essential chips required for artificial intelligence, often called the “new gold or oil in the tech sector” by analysts.
Amidst these developments, AI-based crypto tokens have emerged as outperformers, overshadowing major cryptocurrencies that have experienced a sharp price correction led by Bitcoin (BTC).
According to data from CoinGecko, notable gainers among AI tokens include Fetch.ai (FET), Singularity Net (AGIX), and Ocean Protocol (OCEAN), with gains of 24%, 23.5%, and 22%, respectively, within the past 24 hours alone.
On the one hand, FET experienced a significant recovery and broke its downtrend following a substantial price correction that brought it down to $1.10. Despite being down over 58% from its all-time high of $3.45 in March, blockchain research firm House of Chimera highlights potential real-world use cases for Fetch.ai.
For instance, FET’s autonomous agents can optimize logistics by analyzing and predicting optimal routes, thereby reducing costs and improving delivery times.
With the growing interest in AI applications in the industry and traditional finance, FET’s AI algorithms analyzing large datasets may lead to further price increases in the coming months. Currently, FET is trading at $1.44 with a market capitalization of $3.6 billion.
Long-Term Potential For AI-Based Crypto Tokens
Similarly, Singularity Net’s native token AGIX has followed a similar trajectory to FET, reaching a high of $1.46 in March but currently trading 58% lower at $0.6018.
However, the underlying uses of the protocol, centered around the creation and monetization of AI services through its AI marketplace, suggest the potential for significant gains and investor interest in the long term.
The native token of Ocean Protocol, OCEAN, also displays price actions comparable to those of AGIX and FET. Currently trading at $0.6094, OCEAN has witnessed a trading volume increase of over 20% in the last 24 hours.
The protocol’s open-source model aims to facilitate the exchange and monetization of data and data-based services, with notable applications such as running AI-powered prediction bots or trading bots on crypto price feeds.
Ultimately, Chris Penrose, the global head of business development for telco at Nvidia, firmly believes in future price gains for the entire AI sector, which will further adoption of crypto AI-based tokens.
Penrose expressed utmost confidence in the transformative power of generative AI, emphasizing that investors have barely scratched the surface of its impact on businesses worldwide.
Wedbush Securities, a renowned financial firm, echoed this sentiment by predicting an intense race in the tech sector. Nvidia, Apple, and Microsoft vied for a significant $4 trillion market cap in the upcoming year.
Featured image from DALL-E, chart from TradingView.com
