The resurgence of the cryptocurrency market in recent days has been driven by native cryptocurrencies of blockchain projects that purport to use artificial intelligence (AI). Shares of Nvidia (NVDA), a chipmaker listed on the Nasdaq that is the poster child for all things AI, have also increased.According to data provider CoinGecko, RNDR, the utility token of The Render Network, a decentralized GPU-based rendering system, has increased by about 40% to $10.432 in just seven days, marking the largest gain among the top 100 cryptocurrencies by market value.
Some AI currencies have outperformed the market, rising between 17% and 23%. Examples of these are SingularityNET’s AGIX, Bittensor’s TAO, and Fetch.ai’s FET.The market-value leader in cryptocurrencies, Bitcoin, has increased 1.7%, while the CoinDesk 20 Index, a measure of the overall state of the market, has increased by 0.6%.Decentralized AI currencies and DePIN, or decentralized physical infrastructure, tokens are among the top performers over the last seven days, according to the relative strength crypto narrative tracker of the cryptocurrency analytics platform DYOR.
“There is a strong buzz around Nvidia’s impending earnings,” Hitesh Malviya, founder of DYOR, told CoinDesk. “AI coins will keep having cyclical runs [higher] as they are directly correlated with the whole AI-side development happening around us.”
After the market closes on May 22, the chipmaker is scheduled to release its first-quarter earnings.Zacks Investment Research anticipates that the business will produce $5.49 in earnings per share, up 403% from the previous year.According to Bloomberg, several AI startups have recently seen generally positive outcomes.
Over time, NVDA—whose chips were once used to power mining rigs before attracting AI interest—and bitcoin, as well as the larger cryptocurrency market, have established a strong positive association.After an almost year-long decline, the NVDA and the cryptocurrency market bottomed out in late 2022 with the release of OpenAI’s ChatGPT, which contributed to a greater public understanding of artificial intelligence.
On Monday, NVDA shares increased to $922, the highest level since April 1.TradingView, a data source, indicates that they have recovered more than 20% from the low of $756 they hit on April 19. Over time, NVDA—whose chips were once used to power mining rigs before attracting AI interest—and bitcoin, as well as the larger cryptocurrency market, have established a strong positive association.After an almost year-long decline, the NVDA and the cryptocurrency market bottomed out in late 2022 with the release of OpenAI’s ChatGPT, which contributed to a greater public understanding of artificial intelligence.
There is much speculation that in the upcoming months, OpenAI will probably release ChatGPT version 5.Due in large part to their significant expenditures in artificial intelligence, tech companies revealed late last month that their quarterly earnings growth exceeded expectations.Notably, CEO Tim Cook discussed Apple’s ongoing investments in generative AI on the company’s most recent earnings call. He also hinted at significant announcements regarding AI that will be made at the Worldwide Developers Conference (WWDC) on June 10 and the “Let Loose event” on May 7.
“OpenAI will launch a new model in the coming months, better hardware will be developed, and more funds will be injected into the space. We are in an AI super cycle right now,” Malviya said.