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AI crypto tokens surge after Nvidia results as bitcoin remains volatile

BRAZIL - 2023/10/24: In this photo illustration, the Nvidia logo is displayed on a smartphone screen. (Photo Illustration by Rafael Henrique/SOPA Images/LightRocket via Getty Images)
AI-related crypto tokens have surged following Nvidia's earnings call. (SOPA Images via Getty Images)

Cryptocurrencies related to the artificial intelligence sector have rallied over the past 24 hours, after Nvidia exceeded expectations with its Q4 earnings on Wednesday.

According to Coingecko data, the market capitalisation for artificial intelligence (AI) tokens now stands at $17.4bn (£13.73bn), which is an increase of 6.6% in the last 24 hours. This sector of the cryptocurrency ecosystem has outperformed the general crypto market, which has risen by only 1.3% in the past 24 hours.

AI tokens associated with artificial intelligence projects, such as Fetch.ai, Singularity.net, and Render, all recorded gains in the last 24 hours. Singularity.net's AGIX token surged by over 38%, Fetch.ai's FET token saw an increase of almost 14%, and Render's RNDR token experienced a rise of over 20% during the same period.

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Artificial Intelligence (AI) tokens are cryptocurrencies that power AI-related projects, such as AI-powered portfolio management, image generation, path finding, and more. AI tokens may give their holders governance rights on particular platforms, or they are needed to pay for transactions on these platform.

The surge in value of AI-related cryptocurrencies comes after Nvidia (NVDA) reported its fourth quarter earnings on Wednesday, that beating analysts' expectations.

Nvidia fourth quarter results

On Wednesday, Nvidia reported adjusted earnings per share of $5.16 on revenue of $22.1 billion. This exceeded the expectations of analysts that were anticipating earnings per share of $4.60 on revenue of $20.4 billion. Shares of Nvidia were up more than 5% following the report, but closed Wednesday, down 2.5% to $674.72.

“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” Nvidia CEO Jensen Huang said in a statement following the report.

Bitcoin price volatility increases

The price of bitcoin has held above the $51,000 mark for over one week, propelled by increased allocations from fund managers like BlackRock (BLK) and Franklin Templeton (BEN) into multiple exchange-traded funds (ETFs).

The US Securities and Exchange Commission (SEC) approved the first US-listed ETFs to track bitcoin (BTC-USD) in January. A spot bitcoin ETF is a financial product that investors anticipate could open the gateway for mainstream capital to flood the crypto market.

Bitcoin (BTC-USD) stood at $51,806 (£40,808) at the time of writing. Price volatility over the past 24 hours has led to the liquidation of more than $38m in bitcoin positions over, with the majority, over $21m, consisting of long positions.

According to CoinGlass data, the overall crypto market witnessed the liquidation of over $122m in long positions in the past 24 hours. This contributed to over $189m in total liquidations across major cryptocurrency exchanges.

Watch: Bitcoin ETFs poised for inflows from US pension plans, Standard Chartered analyst says | Future Focus

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