AI tokens see heavy gains following crypto market recovery

FXStreet
Updated May 16, 2024 05:52
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■NEAR, GRT, TAO, and PRIME, among others, posted double-digit gains.

■AI and Big Data category is up more than 11%.

■AI tokens are gearing up for a potential positive earnings report from NVIDIA.


Following the crypto market recovery after the release of the US CPI data, AI tokens posted huge gains on Wednesday. Several factors may be the reason for renewed investor interest in these tokens.


AI tokens see double-digit gains


Several altcoins have posted gains in the past 24 hours, reacting positively to Bitcoin's rise after the US released its CPI data for April. AI tokens are among the largest gainers as the AI and Big Data category increased more than 11% on Wednesday, according to data from CoinMarketCap.


The recent huge gains have seen these tokens wipe off losses recorded earlier in the week, making them more attractive to investors. This is also seen in their overall trading volume, which has spiked more than 34%.


These AI tokens have seen notable increases in the past 24 hours:


Near Protocol (NEAR) rose by about 16% from $6.9 to $8.05 — its highest price in nearly two months. NEAR's current price movement indicates it may be aiming to move past the $8.8 high of March 15.
   

The Graph (GRT) rallied more than 14% from $0.26 to $0.30. According to IntoTheBlock data, only 56% of holders are in the money, and 62% are long-term holders. Hence, GRT may not see any heavy decline in the coming weeks.


Another rising AI and Big Data token is Bittensor (TAO), which posted a 14.1% gain. Echelon Prime (PRIME) is also one of the largest gainers in the AI sector, rising 17% from $13.89 to about $16.29.


Other AI tokens have also risen in the past 24 hours.

AI and Big Data category
AI and Big Data category


Some of the reasons for their increased gain above coins in other categories include:


Expectations of a positive earnings report from  NVIDIA.

Open AI parting ways with former chief scientist Ilya Suskever, who's reported to have been instrumental in the November ouster of CEO Sam Altman.


Open AI giving users access to GPT-4o.


It's crucial to watch out for the upcoming NVIDIA earnings report as it may trigger volatility across the entire AI and Big Data category.

* The content presented above, whether from a third party or not, is considered as general advice only.  This article should not be construed as containing investment advice, investment recommendations, an offer of or solicitation for any transactions in financial instruments.

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