Artificial Intelligence-Related Cryptocurrencies Surge Following Positive Developments
Artificial Intelligence-related cryptocurrencies saw a significant rally over the past day as several new developments surrounding the AI industry reignited interest among its investors.
NEAR Protocol (NEAR), the largest AI coin by market cap, rose 6% in the last 24 hours, trading at $5.45 per coin at press time. Other AI tokens like Internet Computer (ICP), Render (RENDER), Bittensor (TAO), and FET also experienced gains ranging from 4% to 7.6% in the same period.
However, it was Livepeer (LPT), Virtuals Protocol (VIRTUAL), AI Rig Complex (ARC), and PAAL AI (PAAL) that recorded substantial gains of up to 20.7%. These positive movements in the AI sector collectively pushed the total market cap of AI coins up by 25% to $43.5 billion.
Government Announcement Boosts Investor Confidence
The surge in AI-related cryptocurrencies can be attributed to a recent announcement by President-elect Donald Trump regarding the appointment of key advisors to work alongside the incoming AI & Crypto Czar, David Sacks. The goal is to centralize artificial intelligence policy and strengthen the nation’s leadership in transformative technologies.
Key appointments included Sriram Krishnan as senior policy advisor for Artificial Intelligence and Michael Kratsios as Director of the Office of Science and Technology Policy. These appointments, along with the involvement of Lynne Parker in the Presidential Council of Advisors for Science and Technology, have bolstered investor confidence in the future of the AI industry.
Positive Funding News and Market Outlook
Another contributing factor to the recent surge in AI tokens is the major funding announcement from xAI, an AI startup founded by Elon Musk. The company secured $6 billion in its latest funding round, with participation from industry giants like NVIDIA and AMD. These funds will be used to enhance AI infrastructure and develop flagship models.
Overall, the positive developments in the AI sector, combined with bullish news and funding announcements, have propelled AI-related cryptocurrencies to new heights. This surge comes on the heels of a previous all-time high reached following a strong quarterly sales report from AI chip-making giant Nvidia.