Artificial intelligence (AI) tokens have been booming as the category's total market cap has grown to nearly $28 billion after gaining 15% in the past day, according to CoinGecko data.
Leading the charge are tokens like Fetch.ai (FET), which powers an artificial intelligence blockchain for complex machine learning, and Render (RNDR), the token behind a distributed GPU rendering network. FET has surged 30% in just the past day and is up 40% in the past month. RNDR performance in the past day has been more muted, by comparison. The token has climbed 2.3% and is up nearly 30% since this time last month.
A major catalyst has been the stellar performance of Nvidia, the chip giant that provides the computing power for many AI applications. Nvidia's stock has more than doubled year-to-date on booming demand for its artificial intelligence-specific chips.
This Nvidia tailwind is spilling over into the crypto world, as many AI-themed blockchain projects rely on GPU technology.
For example, Fetch.ai uses machine learning algorithms to enable autonomous economic agents, which require significant computing power. Similarly, Render's network taps into underutilized GPU capacity to power high-quality rendering for gaming and media applications.
But the AI token boom goes beyond just a few standout projects. Other notable gainers include Ocean Protocol (OCEAN), a decentralized data exchange for artificial intelligence training, and SingularityNET (AGIX), a platform for creating and monetizing AI services.
Fetch.ai, Ocean Protocol, and SingularityNET were all meant to be undergoing a token merger this month to create the Artificial Super Intelligence Alliance and an ASI token. But the team had to delay the merger, citing technical constraints.
“The finalization of the three-way tokenomic merger on July 15 will be a major milestone,” SingularityNET founder and alliance CEO Ben Goertzel said in a statement last week.
Artificial intelligence tokens represent a unique subset of the cryptocurrency market, focused on powering decentralized networks and applications that leverage artificial intelligence and machine learning. These tokens often serve as the economic incentive layer for AI ecosystems, rewarding participants for contributing data, computing power, or artificial intelligence models.
The transformative potential of artificial intelligence is immense, with applications spanning healthcare, finance, media, and beyond. Artificial intelligence is rapidly becoming an exponential technology, with the power to reshape nearly every aspect of our lives and economy in the coming years.
Blockchain projects have been jockeying to play a key role in the artificial intelligence revolution by enabling secure data sharing, decentralized compute power, and new economic models. The boom in AI tokens reflects a growing recognition of this synergy between AI and crypto.
Of course, investing in AI tokens is not without risks. Many projects are still in early stages, and the crypto market remains highly volatile. But for those who believe in the long-term potential of AI and blockchain, the current boom may be just the beginning.
Edited by Stacy Elliott.