Despite a broader market correction, many artificial intelligence (AI)-based crypto tokens saw positive growth on Feb. 21, with double-digit gains in some cases. This surge follows a significant increase in the market cap of AI tokens over the past month, which has more than doubled.
Leading the rally is Render (RNDR), an Ethereum-based network facilitating decentralized graphics processing unit rendering, which surged over 17% in the past 24 hours. Similarly, The Graph, an indexing protocol for efficiently querying blockchain data, increased by 18%. Fetch.ai (FET) rose by 11%, and SingularityNet (AGIX) recorded an impressive 33% surge.
The total market cap of AI-based tokens has grown by over 9% to reach $17.8 billion since Nvidia’s quarterly earnings report. This marks a substantial increase from $7 billion earlier in February.
Driving Factors Behind AI Tokens
Analysts attribute the favorable market growth of AI tokens to Nvidia’s robust fourth-quarter earnings report, which exceeded market expectations. Nvidia posted revenues of $22.1 billion, surpassing Wall Street’s projected $20.4 billion. Notably, Nvidia’s AI data center revenue quintupled in January compared to 2023.
Nvidia CEO Jensen Huang attributed the company’s sales and revenue boost to the global surge in demand for generative AI. Nvidia’s market capitalization now stands at $1.67 trillion, making it the world’s most traded stock, surpassing Tesla.
Nvidia’s strong performance has had a ripple effect across the AI market, with several AI-focused stocks reaching new highs. Taiwan Semiconductor Manufacturing Company (TSMC), a key Nvidia supplier and the world’s largest contract chipmaker, saw a 2.05% increase in its stock price during morning hour trading on Feb. 21.
Similarly, Super Micro Computer, a server component supplier, experienced an 11.42% rise in its stock price during after-hours trading on Feb. 20. Dutch chip equipment manufacturer ASML also saw a 2.7% increase in its stock price during after-hours trading.
