AI-related altcoins have seen strong gains over the past week. This upward trend coincides with Nvidia’s upcoming quarterly earnings release scheduled for August 28.
Nvidia, a leader in artificial intelligence technology, has consistently surprised markets with strong earnings.
AI-Powered Altcoins Post Double-Digit Gains
The Alliance for Artificial Superintelligence (FET) led the AI altcoin rally with a 61.3% gain. Render (RENDER) followed with a 42% gain, while NEAR Protocol (NEAR) and Bittensor (TAO) climbed 25.7% and 23.1%, respectively.
Read more: Top 9 AI-Powered Cryptocurrencies in 2024
As a result, investor expectations are rising not just about whether Nvidia will beat expectations, but by how much. Bank of America’s Vivek Arya called Nvidia a promising “rebound” stock, downplaying concerns about a slowdown in AI spending.
“Corporate and government adoption of AI has not yet begun on a large scale,” Arya said.
Against this optimistic backdrop, demand for AI altcoins has surged. Driven by fear of missing out (FOMO), notable transactions have occurred, such as when a crypto whale on Binance bought 1.79 million FET tokens for about $2.39 million, representing a significant premium.
Spot On Chain analysts noted that this investor likely regrets selling FET earlier at a lower price and has now decided to buy them back at a higher rate due to the token’s price jumping by 67% in just seven days.
In addition, cryptoanalyst Kyren noted high demand for RENDER.
“The utility of the RENDER token is in motion, now just imagine what will happen when the euphoria returns and the AI trend comes back to life. We have all seen how powerful AI works as a clear leading narrative in this cycle. More importantly, we all know what happens when market demand starts to outpace supply in the markets,” explained Kyren.
In addition to these individual token metrics, the overall AI story in the crypto sector remains strong. According to crypto analytics platform DYOR, the strength of this story is currently the third-strongest relative to Bitcoin, behind only the major decentralized finance (DeFi) sectors.
Read more: 9 Best AI Stocks to Buy in 2024
Looking ahead, anonymous crypto analyst “arndxt” predicts further growth of AI in the crypto space, driven by several upcoming catalysts.
“AI will remain one of the strongest narratives in crypto in 2024. However, there are many catalysts that signal further growth in the AI space, and with the release of GPT 5, 6, 7, I believe we will see a resurgence,” arndxt said.
