AI Tokens Outperform the Crypto Market with Double-Digit Growth

Several crypto tokens that are powered by artificial intelligence (AI) have recorded impressive gains on Thursday, despite the overall market downturn. The market capitalization of AI tokens has more than doubled in a month, reaching $17.8 billion, thanks to the strong performance of Nvidia and the growing demand for generative AI.

Nvidia’s Earnings Boost AI Tokens

Nvidia, the leading chipmaker and AI company, reported its fourth-quarter earnings on Wednesday, beating the market expectations. The company posted revenues of $22.1 billion, higher than the projected $20.4 billion. The company’s AI data center revenue also increased fivefold compared to the previous year.

Nvidia’s CEO Jensen Huang attributed the boost in sales and revenue to the surge in the global demand for generative AI, which is the ability to create new and realistic content, such as images, videos, and texts, using deep learning models. Nvidia is the leader in providing the hardware and software for generative AI, such as its GeForce RTX graphics cards and its Omniverse platform.

Nvidia’s earnings had a positive impact on the crypto market, especially on the AI tokens that are related to or supported by Nvidia. For example, Render (RNDR), a platform that enables decentralized GPU rendering on Ethereum, has surged over 17% in the past 24 hours. Render uses Nvidia’s RTX technology to power its network, and has partnered with Nvidia to launch the Omniverse Render Token.

OpenAI’s Sora Drives AI Tokens

Another factor that contributed to the growth of AI tokens was the announcement of OpenAI’s Sora, a text-to-video tool that can generate realistic and diverse videos from natural language inputs. OpenAI, a research organization dedicated to creating and promoting beneficial AI, unveiled Sora on Feb. 15, and demonstrated its capabilities and applications.

Sora is based on OpenAI’s DALL-E and CLIP models, which can create and classify images from texts. Sora extends this ability to videos, and can generate various scenes, characters, and actions from simple descriptions. Sora can also incorporate user feedback and preferences, and create personalized videos.

OpenAI’s Sora sparked a lot of interest and excitement in the crypto community, as it showcased the potential and innovation of generative AI. Many AI tokens that are based on or inspired by OpenAI’s models and vision also benefited from the announcement. For example, The Graph (GRT), an indexing protocol that enables efficient querying of blockchain data, has increased by 18% in the past 24 hours. The Graph is one of the supporters of OpenAI’s GPT-3, a powerful language model that can generate natural and coherent texts.

AI Tokens to Watch Out For

Besides Render and The Graph, there are other AI tokens that have shown remarkable growth and performance in the past month. Some of these are:

• Fetch.ai (FET), a platform that connects autonomous agents to enable collective learning and problem-solving. Fetch.ai has increased by 11% in the past 24 hours, and has recently launched its mainnet, which supports smart contracts, staking, and governance.
• SingularityNet (AGIX), a network that allows anyone to create, share, and monetize AI services. SingularityNet has surged by 33% in the past 24 hours, and has announced its plans to migrate from Ethereum to Cardano, a more scalable and secure blockchain platform.
• Ocean Protocol (OCEAN), a protocol that enables data exchange and monetization for AI. Ocean Protocol has risen by 9% in the past 24 hours, and has partnered with Polygon, a layer-2 scaling solution for Ethereum, to reduce gas fees and improve user experience.

The market capitalization of AI tokens has more than doubled in a month, from $7 billion to $17.8 billion, according to CoinGecko. The weekly trading volume of AI tokens has also reached its highest level in a year, indicating a strong demand and interest in the AI sector.