AI Tokens Lead Crypto-Market Recovery as Nvidia Hits One-Month High

"We are in an AI super cycle right now," one market observer said.

AccessTimeIconMay 7, 2024 at 10:37 a.m. UTC
Updated May 7, 2024 at 6:46 p.m. UTC
  • AI tokens such as RNDR, AGIX, FET outshine bitcoin by a wide margin.
  • NVDA rallies to a one-month high as excitement builds around the chipmaker's impending earnings report.

Native cryptocurrencies of blockchain projects supposedly using artificial intelligence (AI) have led the crypto market recovery in recent days, while shares of Nasdaq-listed chipmaker Nvidia (NVDA), the poster child for all things AI, also rallied.

RNDR, the utility token of decentralized GPU-based rendering solutions, The Render Network, has surged almost 40% to $10.432 in seven days, the biggest gain among the top 100 cryptocurrencies by market value, according to data source CoinGecko.

Other AI coins, such as SingularityNET's AGIX, Bittensor's TAO and's FET, have gained between 17% and 23%, outperforming the broader market. Bitcoin, the largest cryptocurrency by market value, has risen 1.7%, while the CoinDesk 20 Index, a broader market gauge, has rallied 0.6%.

Crypto analytics platform DYOR's relative strength crypto narrative tracker shows decentralized AI coins and DePIN – or decentralized physical infrastructure – tokens are among the best performers of the past seven days.

"There is a strong buzz around Nvidia's impending earnings," Hitesh Malviya, founder of DYOR, told CoinDesk. "AI coins will keep having cyclical runs [higher] as they are directly correlated with the whole AI-side development happening around us."

The chipmaker is set to report first-quarter earnings on May 22 after the market close. Zacks Investment Research expects the company to report earnings per share of $5.49, a 403% year-on-year increase. Recent results from other AI companies have been largely positive, according to Bloomberg.

Decentralized AI coins lead recovery. (DYOR, Dune)
Decentralized AI coins lead recovery. (DYOR, Dune) (DYOR, Dune)

Shares in NVDA rose to $922 on Monday, hitting the highest since April 1. They have recovered more than 20% from the low of $756 reached on April 19, according to data source TradingView.

Over the years, bitcoin and the broader crypto market have developed a strong positive correlation with NVDA, whose chips were used to power mining rigs before garnering interest from AI. NVDA and the crypto market bottomed out in late 2022, ending an almost year-long downtrend with the debut of OpenAI's ChatGPT, which helped raise general awareness about artificial intelligence.

Speculation is rife that OpenAI is likely to launch version 5 of ChatGPT in the coming months. Late last month, technology giants reported a better-than-expected quarterly earnings growth powered by substantial investments in artificial intelligence.

Notably, during Apple’s recent earnings call, CEO Tim Cook talked about the company’s continued investments in generative AI and teased major AI-related announcements at "Let Loose event" on May 7 and the Worldwide Developers Conference (WWDC) on June 10.

"OpenAI will launch a new model in the coming months, better hardware will be developed, and more funds will be injected into the space. We are in an AI super cycle right now," Malviya said.

12:23 UTC: Adds a para on Apple's Let Loose event.

Edited by Sheldon Reback.


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Omkar Godbole

Omkar Godbole is a Co-Managing Editor on CoinDesk's Markets team.