AI Crypto Tokens Soar in Anticipation of Nvidia's Earnings Report
In the week leading up to the highly anticipated second-quarter earnings report from tech giant Nvidia, artificial intelligence (AI) crypto tokens have seen a significant increase.
As reported by CoinTelegraph.com, the market capitalization of AI and big data cryptocurrency projects and tokens has seen a 79.7% surge over the past three weeks, indicating a resurgence of confidence among crypto investors.
On August 6, the total market cap of AI and big data crypto projects hit a yearly low of $18.21 billion. This was largely due to their indirect reliance on the underperforming price of Bitcoin and the general crypto markets. At that time, Bitcoin’s price had fallen sharply under $50,000, according to data from Cointelegraph Markets Pro and TradingView.
AI-focused tokens such as Near Protocol, Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have seen their gains outpace the broader crypto market over the past week.
Near’s native token, part of the proof-of-stake layer-1 network, surged 35% over the past week, hitting a four-week high of $5.20 on August 25.
The Artificial Superintelligence Alliance, a consortium of Fetch.ai, Ocean Protocol, and SingularityNET, saw even bigger gains. Its FET token surged nearly 70% in a week, reaching $1.39 on August 26.
Onchain analytics platform Lookonchain noted the significant gains and observed unusual whale transaction behavior in FET in an August 26 post. It noted that a whale appeared to regret selling at a lower price before spending $2.38 million Tether to repurchase 1.79 million FET tokens from Binance at a higher price of $1.33 on August 25.
Other AI-associated crypto assets performing well at the time of writing include TAO, which has gained 26% over the past week, topping $350 on August 26. RENDER is also up around 40% over the past seven days, climbing to $6.45 on August 26, according to CoinGecko.
Most major AI tokens have fully recovered from the market crash earlier in August.
Nvidia's Earnings Report: "Most Important Tech Earnings in Years"
The surge in AI-related assets comes as markets prepare for one of the year's most significant tech firm earnings reports. Nvidia will release its Q2 results on Wednesday, August 28.
Dan Ives, one of Wall Street’s most influential tech bulls from Wedbush Securities, told Fortune on August 23 that this is “the most important tech earnings in years.” He believes the tech bull market is driven by demand for new data center capacity, which is needed to power the numerous AI chatbots that have emerged in recent years. In a note on August 22, Ives wrote: “There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia.”
Mike Smith, a portfolio manager at Allspring Global Investments, told Reuters: “Nvidia is the zeitgeist stock today,” adding, “You can think of their earnings four times a year as the Super Bowl.”
Nvidia’s revenue increased 18% between Q3 2023 and Q1 2024 and has surged 262% in the past year. Nvidia stock has skyrocketed a staggering 180% over the past 12 months, hitting an all-time high of $135 in mid-June. Its stock has recovered 30% since the market dump in August and traded at just under $130 at the close of markets on Friday, August 23.
Bottom Line
The anticipation of Nvidia's earnings report has sparked a surge in AI-related crypto assets, reflecting renewed investor confidence in the sector. As AI continues to drive demand for new data center capacity, the performance of AI-related tokens and Nvidia's earnings report will be pivotal in shaping the future of the tech bull market. What are your thoughts on this development? Feel free to share this article with your friends and discuss it. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
AI Crypto Tokens Soar in Anticipation of Nvidia's Earnings Report
In the week leading up to the highly anticipated second-quarter earnings report from tech giant Nvidia, artificial intelligence (AI) crypto tokens have seen a significant increase.
As reported by CoinTelegraph.com, the market capitalization of AI and big data cryptocurrency projects and tokens has seen a 79.7% surge over the past three weeks, indicating a resurgence of confidence among crypto investors.
On August 6, the total market cap of AI and big data crypto projects hit a yearly low of $18.21 billion. This was largely due to their indirect reliance on the underperforming price of Bitcoin and the general crypto markets. At that time, Bitcoin’s price had fallen sharply under $50,000, according to data from Cointelegraph Markets Pro and TradingView.
AI-focused tokens such as Near Protocol, Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have seen their gains outpace the broader crypto market over the past week.
Near’s native token, part of the proof-of-stake layer-1 network, surged 35% over the past week, hitting a four-week high of $5.20 on August 25.
The Artificial Superintelligence Alliance, a consortium of Fetch.ai, Ocean Protocol, and SingularityNET, saw even bigger gains. Its FET token surged nearly 70% in a week, reaching $1.39 on August 26.
Onchain analytics platform Lookonchain noted the significant gains and observed unusual whale transaction behavior in FET in an August 26 post. It noted that a whale appeared to regret selling at a lower price before spending $2.38 million Tether to repurchase 1.79 million FET tokens from Binance at a higher price of $1.33 on August 25.
Other AI-associated crypto assets performing well at the time of writing include TAO, which has gained 26% over the past week, topping $350 on August 26. RENDER is also up around 40% over the past seven days, climbing to $6.45 on August 26, according to CoinGecko.
Most major AI tokens have fully recovered from the market crash earlier in August.
Nvidia's Earnings Report: "Most Important Tech Earnings in Years"
The surge in AI-related assets comes as markets prepare for one of the year's most significant tech firm earnings reports. Nvidia will release its Q2 results on Wednesday, August 28.
Dan Ives, one of Wall Street’s most influential tech bulls from Wedbush Securities, told Fortune on August 23 that this is “the most important tech earnings in years.” He believes the tech bull market is driven by demand for new data center capacity, which is needed to power the numerous AI chatbots that have emerged in recent years. In a note on August 22, Ives wrote: “There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia.”
Mike Smith, a portfolio manager at Allspring Global Investments, told Reuters: “Nvidia is the zeitgeist stock today,” adding, “You can think of their earnings four times a year as the Super Bowl.”
Nvidia’s revenue increased 18% between Q3 2023 and Q1 2024 and has surged 262% in the past year. Nvidia stock has skyrocketed a staggering 180% over the past 12 months, hitting an all-time high of $135 in mid-June. Its stock has recovered 30% since the market dump in August and traded at just under $130 at the close of markets on Friday, August 23.
Bottom Line
The anticipation of Nvidia's earnings report has sparked a surge in AI-related crypto assets, reflecting renewed investor confidence in the sector. As AI continues to drive demand for new data center capacity, the performance of AI-related tokens and Nvidia's earnings report will be pivotal in shaping the future of the tech bull market. What are your thoughts on this development? Feel free to share this article with your friends and discuss it. Don't forget to sign up for the Daily Briefing, which is available every day at 6pm.
