A side view of the particle-shaped AI robot.
Yuichiro Chin | Moment | Getty Images
Artificial intelligence-themed cryptocurrencies got a buzz on Thursday Nvidia and growing demand for artificial intelligence-enabled chips.
SingularityNET (AGIX) rose 19% to 29 cents, according to CoinMarketCap. Cortex (CTXC) rose 6% to 17 cents, while Measurable Data Token (MDT) added 6.5% to 4 cents a coin. All of these tokens have a market cap of less than $40 million.
Fetch.ai ( FET ), with a market cap of $195 million, rose nearly 5% to 23 cents.
Meanwhile, most of the rest of the cryptocurrency market, including Bitcoin and Ether, was unchanged.
AI cryptocurrencies refer to the respective tokens of AI projects based on the blockchain. For example, Fetch.ai is dedicated to building the infrastructure for “smart, autonomous services” in supply chain, finance, travel, and more. Cortex aims to be “the world’s first decentralized computer capable of running AI and AI-powered dApps on the blockchain.”
Crypto traders got a boost from the rally in the S&P 500 and Nasdaq Composite, led by Nvidia, which posted stunning sales guidance late Wednesday and cited demand for its AI capabilities. Projected sales for the second quarter of fiscal 2024 exceeded analysts’ expectations by more than 50%.
In a certain part of the tech world, some market participants have long believed that the wild west of artificial intelligence could benefit from blockchain technology and potentially be a positive catalyst for the crypto market as a whole. In particular, as AI becomes smarter and better at manipulating people’s online identities, blockchain technology can potentially help leverage its ability to deploy digital identity solutions at scale.
However, this may still be a long way off, as both technologies are still in their infancy.
Bitcoin and ether hovered around the flat line on Thursday as investors remained focused on ongoing debt ceiling talks heading into the long holiday weekend. Minutes of the Federal Reserve’s latest meeting, released on Wednesday, also showed officials divided on what the central bank’s next steps should be when it comes to raising interest rates.