A.I. Crypto Tokens Outperform In Current Market

Yolowire 9-Jul-2024 10:32 AM

%Cryptocurrency tokens associated with %ArtificialIntelligence (A.I.) are outperforming in the current market despite rising concerns that a bubble might be forming in the sector.

Market data from CoinGecko shows that the A.I. crypto token category was up 4.5% on July 9 versus a 1.5% for other digital assets.

A.I. tokens that are marching higher currently include NEAR (NEAR), Internet Computer (ICP), Render (RNDR) and SingularityNet (AGIX).

The rise of A.I. crypto comes as investors remain extremely bullish on the sector and its growth trajectory. Stocks associated with A.I. led the market rally seen in this year’s first half.

However, some analysts are starting to raise concerns that a bubble might be forming in A.I. stocks after shares of companies such as %Nvidia (NASDAQ:NVDA) and %SuperMicroComputer (NASDAQ:SMCI) more than doubled since January of this year.

At the same time, a report from investment bank %GoldmanSachs (NYSE:GS) questions the long-term economic viability of A.I., pointing to its limited productivity benefits and high-power demands.

A separate report from venture capital firm Sequoia argues that there's a $600 billion U.S. revenue gap in the A.I. sector right now.

Despite red flags being raised, investors continue to bid up A.I. stocks and crypto tokens, especially as the two sectors appear to be converging somewhat.

Nvidia CEO Jensen Huang recently invited NEAR's founder Illia Polosukhin on-stage at a conference for a fireside chat about the future of A.I. and crypto.

NEAR revolutionized natural language processing with its research on transformers, the underlying architecture behind large language models (LLMs) that train A.I. technologies.