- Nvidia reached a new all-time high on Tuesday.
- The AI-token sector’s trading volume has grown 2,500% in the last five months.
- At the same time, Binance has lost its AI token dominance.
Nvidia is on a tear.
The chipmaking company nudged a new all-time high on Tuesday. Worth almost $3 trillion, Nvidia has seen its stock rise a whopping 130% since January 1.
But that pales in comparison to some crypto projects involving artificial intelligence.
Outperforming Nvidia
Nvidia has risen almost twice as much as Bitcoin since the beginning of the year, but some crypto tokens associated with AI technology have kept pace — or even outperformed — the firm over the same period.
Fetch.AI has soared more than 200% and SingularityNET 190%.
Meanwhile, Akash Network and Render Network are both up roughly 120%. And Near Protocol, the sector laggard, still put on an impressive 100% performance.
Even so, the price correlation between AI tokens and Nvidia has remained relatively low after reaching a multi-month high in February, said research firm Kaiko.
Put differently, while both are risk-on market plays, AI tokens haven’t necessarily been influenced by Nvidia’s price action lately.
In fact, Worldcoin’s token, WLD, has been more tightly correlated to Nvidia than the AI-adjacent tokens mentioned above.
That’s despite the fact that Worldcoin markets itself as an identity protocol, not specifically an AI project, despite it being co-founded by OpenAI CEO Sam Altman.
Meanwhile, the sector’s weekly trading volume has soared 2,500% from an all-time low of $300 million in 2023 to $8 billion on average, according to Kaiko.
Binance market share
Binance — which used to be the leading exchange for trading AI tokens — has seen much of its market share bleed away.
The crypto exchange, which processed more than 70% of the sector’s trading volume at the beginning of 2023, now only commands 39% of the market, Kaiko said.
The platforms that benefited from the sector’s growth, Kaiko said, were exchanges based in the US — mostly Coinbase — and in South Korea.
Crypto market movers
- Bitcoin is down about 1% in the last 24 hours to $67,849.
- Ethereum has falled about 2% over the same period to about $3,815.
What we’re reading
- Jailed Binance exec in Nigeria is struck by malaria amid anguished pleas from his lawyers and family — DL News.
- Best NFT Tax Loss Harvesting Tools 2024 — Milk Road.
- Why Many Democrats, Including the White House, Have Come Around on Crypto — Unchained.
- Best Ethereum Wallets Of 2024 — Milk Road.
- Binance France drops CZ and names two new shareholders to preserve European foothold — DL News.
Tom Carreras is a markets correspondent at DL News. Got a tip about Bitcoin ETFs? Reach out at tcarreras@dlnews.com
