The Wall Street’s darling Nvidia is performing marvelously on stock exchange charts. As everything AI works on the chips it makes, the native tokens of artificial intelligence-based blockchains have dominated the current recovery of the cryptocurrency market.
AI tokens are racing
Altcoins that are considered AI tokens, such as RNDR, AGIX of SingularityNET, FET of Fetch.ai, and TAO of Bittensor’s, have made good gains, from 17% to 40%, outperforming leading projects and the broader crypto market.
Bitcoin, the king of cryptocurrencies and the largest coin by market cap, has gained 9.55% over the past week, which are good gains for the length of time, but at the same time, the utility token RNDR of rendering solution provider Render has jumped more than 40% as of today.
Crypto-analytic platforms show that AI-based tokens are performing better at the moment and during the past week. Take, for example, the relative strength crypto narrative tracking chart of the DYOR platform, as it shows decentralized AI at the top. Take a look at the image below.
Semiconductor giants like Nvidia are generating substantial profits
As we know, investors are excited about Nvidia’s earnings report that is due soon, and with heavy pledges by mega tech companies like Meta and Google in AI infrastructure developments, the chip maker’s future for the coming years seems bright, so it is expected that AI tokens will also keep excelling as there is a connection between them and all the AI things.
At the end of the last month, a pseudonymous trader who goes by Crypto Stream said in a post on the X platform that his base for making assumptions about AI tokens is usually the performance shown by Nvidia, and he highlighted that many traders will be waiting for the anticipated quarter-one earnings report to make decisions.
The semiconductor giant is announcing its earnings for the first fiscal quarter on May 22. It is expected that earnings would have increased year over year by more than 400%.
Nvidia’s computer chips and GPUs were used by mining rigs long before even AI came to attention with ChatGPT’s release, so the cryptocurrencies had already developed a solid direct relationship with the semiconductor sector.
Take into account the launch of ChatGPT at a time when the crypto market was under a long bearish spell, and it started to recover near the end of 2022, when ChatGPT hype was accelerating and AI also became the focus point.
Chat GPT 5 release is near the corner, and there are also speculations about a possible ChatGPT search engine. It does not require Einstein’s mind to predict that more capital will be poured into the sector, so definitely AI-based blockchains and their native AI tokens are also expected to enjoy the bullish ride.
