Cryptocurrency AI Tokens Gain Spotlight as DOGE and SHIB Growth Slows

Traders are flocking to purchase tokens related to Artificial Intelligence (AI) in anticipation of a cryptocurrency project mention at the upcoming Nvidia (NVDA) conference later this month. This surge in interest has propelled a 25% increase in the AI token category on CoinGecko within 24 hours.

Tokens such as Fetch.AI (FET), Render Network (RNDR), Sleepless AI (AI), and SingularityNET (AGIX) have seen gains of up to 40%. These projects claim to utilize AI in various ways, from providing virtual companions to serving as marketplaces for graphics processing cards.

According to Lookonchain, this significant rise is backed by reports of cryptocurrency AI project developers attending the chip manufacturer’s conference or participating in panel discussions. The event is scheduled to take place from March 17th to 21st. In contrast, Bitcoin has risen by 0.3%, and the CoinDesk 20, a broad liquidity index of major tokens, has increased by 0.4%.

The NVIDIA AI flagship conference is just around the corner, with only one cryptocurrency project set to be featured prominently, and its founder will join Jensen Huang in a panel discussion.

AI tokens remain a hot topic among cryptocurrency traders as the technology is expected to drive key innovations in the global economy over the next few years. However, the relationship between AI and cryptocurrencies is not yet clear: AI cannot run on blockchain. Nevertheless, the growth of traditional AI companies like OpenAI continues to fuel the rise of AI tokens as traders use them as proxy bets on the industry.

Following Nvidia’s surpassing of fourth-quarter earnings and first-quarter guidance expectations last month, these tokens also experienced a rise.

It wouldn’t be surprising to see these AI coins (and other coins on Binance) continue to rise further before the Nvidia conference on March 17th. This reminds me of when Facebook rebranded to Meta in November 2021, and all metaverse coins surged 6-10 times in 29 days.

Meanwhile, data indicates that the influx of funds into AI tokens may have hindered the weeks-long rally of meme coins.

With Bitcoin briefly breaking its historical high, tokens like Dogecoin (DOGE), PepeCoin (PEPE), and Dogwifhat (WIF) have more than doubled in price over the past few weeks. Some observers attribute this significant rise to meme coins being more retail-friendly, often attracting traders to the cryptocurrency market during Bitcoin rallies.

The rebound seems to have paused for now. Data shows that DOGE, SHIB, and PEPE have fallen by over 15% in the past 24 hours. Another sign of funds leaving the market is the $400 million drop from the historical high in open interest for DOGE-tracking futures since Tuesday.

Sentiment: Positive