- Growth of AI-Focused Cryptocurrency Market
- Impact of Federal Reserve on the Market
- Nvidia's Future and Its Impact on AI Tokens
AI-focused cryptocurrencies will be in the spotlight next week as Nvidia publishes its quarterly results after the closing bell on Wednesday, Aug. 28.
Growth of AI-Focused Cryptocurrency Market
Ahead of this event, Akash Network (AKT) has risen by 10% in the past seven days. Similarly, Bittensor (TAO), Render Token (RNDR), and Artificial Superintelligence Alliance (FET) have both jumped by over 30% in this period. According to CoinGecko, the market cap of all AI tokens rose by over 13.7% on Aug. 24 while the trading volume rose to $1.7 billion.
Impact of Federal Reserve on the Market
These gains came on the heels of Federal Reserve’s Jerome Powell's recent speech where he hinted that interest rates will be cut in September. Nvidia’s stock has surged by over 161% this year, giving it a market cap of over $3.1 trillion, making it the third-biggest company in the world.
Nvidia's Future and Its Impact on AI Tokens
Nvidia’s results will likely provide a glimpse at whether AI demand is rising. In its first-quarter results, the company’s revenues jumped by over 240% to over $26 billion. Analysts expect its revenue to grow to $28.6 billion in the second quarter. Strong revenues and forward guidance bode well for the industry, which will lead to higher prices for associated assets. Results that come below estimates could lead to a sharp reversal. Akash Network and Render are aligned with Nvidia’s business because they are at the intersection of blockchain and the semiconductor industry. They both offer distributed GPU rendering solutions on the blockchain network. For example, data on Akash Network’s website shows that one can hire Nvidia’s H100 GPU for less than $1 an hour, an affordable price for a product that sells for over $30,000. Bittensor has a similar distributed model in that it offers a platform that decentralizes the process of creating machine intelligence solutions. Its token has risen by 106% from its lowest point in August. The other top AI tokens to watch as Nvidia publishes its earnings are AIOZ Network (AIOZ), Arkham (ARKM), The Graph (GRT), and Internet Computer (ICP).
Nvidia's financial results, to be published next week, will be a crucial indicator for the AI-token market. We eagerly anticipate how this will affect the further development of the industry.
