Cryptocurrencies focused on artificial intelligence (AI) have risen sharply following the first-quarter earnings beat by microchip and semiconductor company Nvidia (NVDA).
Nvidia handily beat its Q1 results and provided bullish forward guidance due to increasing demand for chips that power AI applications. Nvidia’s stock rose 25% immediately after its latest earnings print.
At the same time, cryptocurrencies such as SingularityNET (AGIX) rose 19%, Cortex (CTXC) rose 6%, and Measurable Data Token (MDT) added 6.5%, according to CoinMarketCap.
Other crypto that claims to play a role in artificial intelligence also rose, including Fetch.ai (FET), which gained nearly 5% in trading on May 25.
More traditional and larger cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) were flat on the day.
AI cryptocurrencies refer to blockchain-based artificial intelligence projects that correspond to digital tokens.
Fetch.ai, for example, is focused on building infrastructure for smart, autonomous services in supply chain and finance. Cortex says it aims to be the “first decentralized world computer capable of running AI on the blockchain.”
Some analysts believe that AI can benefit from blockchain technology and potentially be a positive catalyst for cryptocurrencies going forward.
Additionally, some believe that as AI gets better at manipulating people’s identities online, blockchain technology could offer digital identity solutions.
The price of Bitcoin, the largest crypto by market capitalization, is up 60% this year, though its price has declined 7% over the last month.
