AI coins jump ahead of latest Nvidia earnings
Crypto coins linked to decentralized artificial intelligence (AI) projects rose ahead of the AI-focused chipmaking giant Nvidia (Nasdaq: NVDA) posting its second-quarter earnings report on Aug. 27.
In simple words, decentralized AI refers to AI systems that operate across a distributed blockchain network, rather than being controlled by a single centralized entity like Google or OpenAI. The financial transactions of these projects are paid in crypto assets.
AI coins gain
TAO, the AI coin behind the open-source protocol Bittensor powering the decentralized machine learning network, rose 0.8% in an hour to reach $338.98.
The NEAR coin, which powers the AI-native NEAR Protocol, rose 0.7% to $2.55.
ICP is another prominent AI coin that empowers the Internet Computer blockchain to be leveraged to build both Web 2.0 and Web 3.0 platforms. The coin rose 0.4% to $5.09.
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RENDER is the AI coin behind a decentralized GPU compute platform called the Render Network, which is used for 3D, ML, and generative AI services. It rose 0.5% to $3.66.
The IP token, as the name suggests, enables the Story blockchain, which enables tokenization of intellectual properties. It rose 0.6% to $6.11.
Related: What is tokenization? Explained
FET is the AI coin behind the Artificial Superintelligence Alliance consortium that delivers automation to decentralized finance (DeFi). It also grew 0.6% to $0.647.
The Graph is a prominent project that leverages AI to index blockchain data. The GRT coin behind it similarly climbed 0.6% to $0.09136.
The THETA AI coin powers the Theta Network, the decentralized cloud for AI and media. The coin rose 0.7% to $0.8037.
VIRTUAL, the token behind the AI and Metaverse protocol called the Virtuals Protocol, rose 0.3% to $1.18.
AI boom rewards Nvidia
The generative AI boom has been very rewarding for Nvidia, transforming it into the world's largest company with a market cap of $4.4 trillion — the first and only company to achieve the target so far. Notably, the total crypto market cap also recently surpassed $4 trillion.
Melissa Otto, head of Visible Alpha Research at S&P Global, said:
“The assumptions and performance of Nvidia really dictates what the market is going to start to price into the AI trade, and that whole AI trade has essentially been driving the market this past year.”
The NVDA stock was trading at $182.01 at press time, up 0.13% a day.