AI tokens record double-digit gains as market cap doubles in a month

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While many attributed the recent surge in AI tokens to Nvidia’s massive earning reports, data indicates AI tokens have been on a positive trajectory over the past month.

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AI tokens record double-digit gains as market cap doubles in a month

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Many artificial intelligence (AI)-based crypto tokens and traditional stocks recorded positive growth on Feb. 21 despite a broader market correction. Popular AI-based crypto tokens posted double-digit gains after the market cap of the tokens more than doubled in a month.

Render (RNDR), an Ethereum-based network that facilitates decentralized graphics processing unit rendering, has surged over 17% in the past 24 hours. Similarly, The Graph (GRT), an indexing protocol for efficiently querying blockchain data, has increased by 18% in the past 24 hours. (FET) is up 11%, while SingularityNet (AGIX) recorded a 33% surge.

AI crypto token price momentum. Source: CoinGecko

The total market cap of AI-based tokens swelled by over 9% to $17.8 billion since Nvidia’s quarterly earnings report and has risen from $7 billion earlier in February.

The AI tokens hit their highest weekly trade volume in a year after OpenAI announced its text-to-video tool, Sora, on Feb. 15.

AI tokens weekly volume. Source: Kaiko

Many attributed the favorable market growth of AI tokens to Nvidia’s latest fourth-quarter earnings report surpassing market estimation. The chipmaker posted revenues of $22.1 billion — higher than Wall Street’s projected $20.4 billion. Nvidia’s AI data center revenue quintupled in January versus 2023. 

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Nvidia CEO Jensen Huang also credited the boost in sales and revenue to the surge in the global demand for generative AI. The chipmaker boasts a market capitalization of $1.67 trillion, overtaking Tesla as the world’s most traded stock.

The boost in Nvidia’s AI businesses was reflected in the AI crypto market and helped several AI-focused stocks record new highs. Nvidia supplier and the world’s largest contract chipmaker, Taiwan Semiconductor Manufacturing Company (TSMC), jumped by 2.05% during morning hour trading on Feb. 21.

Similarly, the stock price of server component supplier Super Micro Computer rose 11.42% during after-hours trading on Feb. 20. Dutch chip equipment manufacturer ASML rose 2.7% during after-hours trading.

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