- Nvidia’s positive earnings forecast boosted the AI token market.
- NEAR Protocol ($NEAR), Internet Computer ($ICP), and Artificial Superintelligence Alliance ($FET) lead the pack with over $3B market cap each.
- Binance has recently invested in two AI startups, which highlights the growing recognition of AI tech in the crypto space.
Despite the recent stock market dip, analysts are bullish on Nvidia, expecting it to hit earnings of $0.65 per share, a 141% yearly increase.
Nvidia’s stock surged 16.31% in August and over 50% in the last six months. This growth fuels the AI crypto market, with top tokens like $NEAR, $ICP, and $FET seeing 27.5%, 19.37%, and 64.50% weekly increases, respectively.
This indicates that, while current & short-term AI innovations might not be as revolutionary as the market initially thought, specific applications, like AI tokens will likely benefit from this generation’s advancements.
$FET Leads AI Token Rally
During the last week, traders in Asia have been actively investing in $FET, the native token of the Artificial Superintelligence Alliance. $FET was trading at $0.7213 on August 5, the ‘Crypto Black Monday,’ and now stands at $1.34, representing an 85% increase.
Other top gainers in the AI token sector this week include:
The bullish trend is evident with 90 out of the 100 top AI tokens experiencing substantial gains.
Nvidia’s earnings have historically been a leading indicator for the AI token market. According to FactSet, analysts predict Nvidia to see a 141% yearly increase in earnings per share and a 113% increase in revenue, reaching $28.72B.
If forecasts are correct, Nvidia is on track for its fifth consecutive quarter of triple-digit growth.
This puts Nvidia’s stock price fluctuation in perspective – its stock price more than tripling since last year may have been a bit overenthusiastic, and it was due a few corrections, but that doesn’t mean the company is not poised for strong growth in the long-term.
Binance Bets on AI and Blockchain Synergy
Recently, Binance announced investments in two AI startups, Sahara AI and MyShell.
In other bullish AI news, Binance is betting on blockchain AI. Sahara AI aims to create a self-sustaining AI ecosystem with on-chain attribution, rewards for infrastructure providers, and an autonomous agent. Similarly, MyShell would streamline AI app development.
The exchange’s investment director Max Coniglio explained AI and blockchain complement each other by addressing mutual challenges.
A secure blockchain reduces the risk of data breaches and bias in AI applications, while AI can automate smart contract verification and help identify fraudulent activities by analyzing blockchain data.
This is yet another use case where AI is proving to save developers and businesses valuable resources. It’s not much, but it’s honest work as the saying goes, and, more importantly, it shows up on the balance sheet.
And we know companies are being more and more careful about their expenditures in our current market conditions where capital is still expensive and hard to come by.
Nvidia’s exceptional financial performance, coupled with investments in AI startups by major players like Binance, positively impacted the AI token market, and we expect this to continue for as long as companies figure out areas where AI can actually make a difference.
The symbiosis of AI and blockchain holds much promise, but will it be a game-changer for the industry? We’ll have to wait and see.
References
Disclaimer: The opinions expressed in this article do not constitute financial advice. We encourage readers to conduct their own research and determine their own risk tolerance before making any financial decisions. Cryptocurrency is a highly volatile, high-risk asset class.
