🌎 AI Crypto Tokens Surge as Investors Anticipate Strong Nvidia Earnings

As analysts forecast a nearly twofold increase in NVIDIA’s revenue, the potential impact on AI-focused crypto tokens is becoming a hot topic in the investment community.

AI Tokens Surge on Anticipation of Strong Nvidia Earnings

With Nvidia’s Q2 earnings report approaching, excitement is building in the crypto world, especially among AI-focused tokens. Over the past week, these tokens have experienced significant gains, outpacing the broader crypto market as investors anticipate robust performance from the AI sector.

Leading this surge is the Artificial Superintelligence Alliance token, which unites Fetch.ai, Ocean Protocol, and SingularityNET. The FET token has seen nearly a 50% increase in the last seven days, trading at $1.30 as of Aug. 27. Even a whale investor who sold 2.33 million FET tokens between Aug. 11 and Aug. 23 at $1.02 has seemingly regretted the decision. This investor bought back 1.79 million FET tokens at a higher price of $1.33, spending 2.385 million USDT.

Another AI token experiencing a rise is Render (RNDR), a decentralized GPU rendering network that leverages idle GPU power for digital content rendering. RNDR has shown stellar performance, climbing over 36% in the last week and trading at $6.08 as of Aug. 27.

Meanwhile, the NEAR Protocol has also joined the rally. NEAR’s native token surged nearly 20% over the last seven days, trading at $4.76 as of Aug. 27.

Overall, the combined market cap of AI-related crypto tokens surged from a 30-day low of $18.21 billion on Aug. 5 to $32.74 billion on Aug. 25—an approximately 80% spike—before settling at $30.72 billion as of Aug. 27.

The bullish momentum in the AI sector has clearly influenced AI-related crypto tokens. Investors, anticipating strong results from NVIDIA, are positioning themselves in the crypto market, particularly in tokens tied to the AI industry. The developments in the coming months could set the tone for both the tech and crypto sectors.

Funding Floods into AI-Crypto Projects

It’s not just the prices of AI tokens that are soaring—funding for AI-crypto projects has also seen a significant uptick, with large inflows pouring into ventures that blend artificial intelligence and blockchain technology.

One notable example is PIP Labs, the creators of Story Protocol, a layer 1 blockchain designed to tokenize intellectual property. PIP Labs closed an $80 million Series B funding round on Aug. 21, led by a16z crypto, propelling their valuation to $2.25 billion.

Sahara Labs is another standout in the AI-crypto space. The startup, developing Sahara AI, a decentralized platform to compensate AI contributors fairly, recently raised $37 million in a strategic funding round co-led by Pantera Capital and Polychain Capital.

Sentient, co-founded by Polygon’s Sandeep Nailwal, made headlines on Jul. 2 by securing an $85 million mega seed round. Additionally, Space and Time, a multi-purpose verifiable compute layer at the intersection of AI and blockchain, secured $20 million in Series A funding on Aug. 27, led by VCs such as Framework Ventures, Lightspeed Faction, Arrington Capital, and Hivemind Capital. This comes on the heels of a $20 million strategic funding round led by Microsoft’s M12 Ventures in September 2022.

Why AI-Crypto is the New Frontier

To understand why AI-crypto projects are gaining momentum, it helps to draw parallels with the internet boom of the late 1990s and early 2000s. During that period, the internet transitioned from a niche technology to a global force, with companies like Amazon and Google growing into digital giants. This transformation required massive investments in new infrastructure, such as data centers and content delivery networks.

We see a similar pattern today with AI. As AI advances, the demand for infrastructure capable of handling vast amounts of data is skyrocketing. NVIDIA is at the forefront of this trend, with its GPUs powering demanding AI applications, making it a key player in the ongoing AI expansion.

Moreover, as AI integrates deeper into various industries, the need for decentralized, secure systems—like those developed by AI-crypto startups—will continue to grow. By merging the strengths of AI and blockchain, we’re creating a new class of intelligent digital assets that are secure, transparent, and capable of addressing real-world challenges.

As this trend continues, it’s clear that the future of crypto lies not just in digital currencies but in the intelligent systems that power them. This is a space to watch closely, as the possibilities are immense.