In the wake of a general market downturn, crypto tokens and stocks rooted in artificial intelligence have bucked the trend, showing remarkable resilience and growth on February 21. The AI sector within the cryptocurrency market has witnessed a substantial 9% surge in total market value, now estimated at $17.8 billion, sparked by Nvidia’s strong quarterly performance. Tokens in this space outperformed expectations, with some projects experiencing double-digit gains, contrasting with the broader market’s downward trajectory.
Surge in AI-Related Cryptocurrencies
Significantly, certain AI-centric tokens like Render (RNDR) saw increases surpassing 17%, while The Graph (GRT) enjoyed a similar upswing of 18% in just 24 hours. Fetch.AI (FET) and SingularityNet (AGIX) also posted impressive climbs of 11% and 33% on the day, respectively. This notable rally reflects the escalating interest and investment in the artificial intelligence field within the digital assets market.
Nvidia Spearheads Market Optimism
The recent advancements and positive sentiment in the AI cryptocurrency niche can be partly credited to Nvidia’s financial report, which exceeded analysts’ revenue predictions, signaling robust growth. The company announced $22.1 billion in earnings for the quarter, outpacing the $20.4 billion forecast. Nvidia’s AI-related data center revenue exhibited fivefold growth year-over-year during the January quarter. Consequently, this has led to a spike in trading volumes and prices for AI-focused cryptocurrencies and stocks.
Nvidia’s CEO credited the surge in sales to increasing demand for generative AI technologies, with Nvidia stock becoming the most traded globally, surpassing Tesla. The ripple effect of Nvidia’s success influenced AI-centric stocks to reach new peaks. Taiwan Semiconductor Manufacturing Company, Nvidia’s supplier, and the world’s top contract GPU maker, saw shares rise by 2.05% in early trading on February 21.
Additionally, other industry players like Super Micro Computer and ASML, a Dutch chip equipment manufacturer, experienced stock price increases of 11.42% and 2.7% in after-hours trading, respectively, further demonstrating the growing investor enthusiasm for AI technologies.