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These 3 AI crypto tokens are up 132% or more this year
Bitcoin (CRYPTO: BTC) may have stalled in the $60,000 to $65,000 range, but cryptocurrency investors can still find opportunities. Some newer crypto tokens with artificial intelligence (AI) connections are still vibrant, and some of them are up more than 132% during the year.
One of the main reasons for this was the enormous enthusiasm around the artificial intelligence investment thesis. The same way they have embraced equity investors Nvidia (NASDAQ: NVDA), cryptocurrency investors are now embracing new crypto tokens that they believe could benefit the most from artificial intelligence. With that in mind, here’s a closer look at three of the most popular AI crypto tokens that have seen the biggest increases lately.
Render
Probably, the most popular AI crypto token is Render (CRYPTO: RNDR) — is up 132% for the year. With a total market capitalization of $4.5 billion, Render now ranks among the top 25 cryptocurrencies. Given its recent rise, some investors now refer to Render as “the Nvidia of cryptocurrencies.” As you might have guessed from the name, Render offers GPU-based rendering solutions for studios, artists, and creators.
But that’s not why cryptocurrency investors are so excited about Render. The thought now is that the same should be decentralized GPU computing power used for rendering can also be used for artificial intelligence. If you want to train a large language model (LLM), for example, you’ll need a lot of “GPU compute,” which is the raw computing power required for modern AI solutions.
So it’s easy to see why Render’s performance is starting to look a lot like that of Nvidia (which has become almost synonymous with all things AI). Nvidia is the ultimate source of all that GPU-based computing power, whether it’s used for rendering or AI.
Recover.ai
Recover.ai (CRYPTO:FET) is up a staggering 208% for the year and now ranks among the top 50 cryptocurrencies by market capitalization. Fetch.ai is building what it calls an “open, permissionless, decentralized machine learning network with a crypto economy.” It’s a long sentence, but it simply means that Fetch.ai is a new platform for artificial intelligence products and services. This includes large datasets for training LLMs and sophisticated AI robots known as agents.
The way you pay for these AI products and services is with the Fetch.ai token. You can think of Fetch.ai as a digital currency for the emerging AI economy. Therefore, the greater the demand for everything related to artificial intelligence, the greater the demand for the Fetch.ai token.
Image source: Getty Images.
While there is obviously some demand for AI at the consumer level (who hasn’t played with AI chatbots?), the real demand will come from companies looking to undergo AI-related transformations. This is where Nvidia comes in because these companies often use Nvidia products for new AI-related projects.
The story continues
According to Fetch.ai, the biggest growth opportunities are found in sectors such as logistics, transportation and smart energy grids. As evidence of its growing focus on the sector, Fetch.ai recently partnered with German companies Bosch AND Deutsche Telekom on an AI platform.
Since 2017, Bosch has been collaborating with Nvidia on AI-powered self-driving cars, so this may be just one example of an area where Fetch.ai gets a huge boost. In the past, Deutsche Telekom has collaborated with Nvidia on “smart city” concepts, so this could be another area.
SingularityNET
Finally there is SingularityNET (CRYPTO: AGIX), up 193% year-over-year. It now ranks among the top 75 cryptocurrencies, with a market capitalization of $1.2 billion. However, since it is not available for trading on popular cryptocurrency exchanges like Global Coinbase (NASDAQ: COIN), may not be suitable for all cryptocurrency investors.
In terms of overall AI strategy, SingularityNET is hitting it out of the park. It is pushing forward the idea of artificial general intelligence (AGI), which is leaps and bounds ahead of the current version of AI, known as generative AI (better known as the variety that includes ChatGPT).
Indeed, according to futurists like Ray Kurzweil (now of Google), AGI implies a future in which a single computer is smarter than all humans combined. It will have access to all human knowledge ever created and, as a result, will be able to create truly innovative solutions. To power that level of AI, you’ll likely need a lot of Nvidia GPUs.
What is the future of AI crypto tokens?
As long as Nvidia’s stock performance continues to impress, it’s safe to say that investors will be on the lookout for crypto tokens that will most likely benefit from the excitement around artificial intelligence. For investors who think that Nvidia is the only AI stock they need to own, then it makes sense to also focus on AI crypto tokens with indirect or direct ties to Nvidia.
However, keep in mind that AI is still a relatively new industry and that trends can come and go. Many companies claim to be “the next Nvidia,” so the AI investment thesis will likely change and evolve over time. For now, however, the three crypto tokens highlighted above appear to be doing the best job of taking advantage of the new excitement around artificial intelligence.
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Domenico Basulto has positions in Bitcoin and Fetch. The Motley Fool has positions and recommends Bitcoin, Coinbase Global, Fetch, Nvidia and Render Token. The Motley Fool has a disclosure policy.
Thanks, Nvidia: These 3 AI Crypto Tokens Are Up 132% Or More This Year was originally published by The Motley Fool