According to Nansen, the market continues to show strong interest in stocks and cryptocurrencies related to artificial intelligence (AI), primarily the Nvidia stock.
Nansen: the interest in Nvidia and AI tokens
Yesterday at market opening, the stock NVDA recorded its new all-time high price, surpassing $140 for the first time.
It must be said that several analysts had predicted a jump above $140, and since this was a well-known target, it is not surprising that as soon as it reached that level, it started to decline. However, the subsequent correction is not a retracement at all, but just a reverse bounce after breaking the $140 barrier for the first time in its history.
It should be remembered that a short time ago there was a split, so one share today corresponds to one-tenth of the shares from last month.
The fact is that the $140 on which Nvidia’s stock price bounced yesterday is not the maximum expected for 2024, so much so that it seems that NVDA still has potential to rise well beyond, perhaps in the autumn.
Nvidia is a company that is raking in profits upon profits, so much so that the price-to-earnings ratio is still not at all high, despite having recently jumped to the absolute first place globally among companies with the highest market capitalization.
As Wilson says, the sector of artificial intelligence is definitely still very hot, both in traditional markets and in crypto ones, and for now, there is not even a hint of a cooling trend in sight.
The AI crypto
However, the discourse changes for cryptocurrencies linked to artificial intelligence, because these do not represent companies that are stringing together a long series of profit records.
In fact, the AI tokens had lost quite a bit compared to the highs of March, but now they are recovering.
In particular, the analyst from Nansen.ai points out that NEAR and RNDR have increased by about 300% in the last year, while for example ETH in the same period has recorded just over 100%.
Therefore, even in the crypto markets there is a high market interest in artificial intelligence.
Even those tokens that are destined to merge into ASI (Artificial Superintelligence), namely FET from Fetch.ai, AGIX from SingularityNET, and OCEAN from Ocean Protocol, have recently started to perform well again.
Wilson points out that they have recorded increases of up to 35%, with the entire AI token sector recording an average gain of 15%.
This is a rally triggered by the surge in the price of Nvidia’s shares.
The token FET
However, while the NVDA stock is at all-time highs, the price of the FET token from Fetch.ai is still at -54% from the highs of three months ago.
The point is precisely that Nvidia is a company that produces goods and sells them, earning profits, while Fetch.ai does not. It is no coincidence that they decided to merge their token FET together with AGIX and OCEAN, but it is precisely just a merger of three crypto projects.
It is necessary to consider tokens that ride the wave of artificial intelligence in the crypto markets, and not AI sector companies that produce and sell goods.
The first strong rise in the price of FET occurred between October and December of last year, when in a few months it went from $0.2 to $0.7. Even at that time, this movement was driven by the success of Nvidia in the traditional markets.
Among other things, the peak of 2021 was above 0.9$, so before the rise of last year it had dropped to -77% from the highs.
The second strong rise occurred in February, driven mainly by Bitcoin and the crypto markets. Within three weeks, the price of FET soared to $3, with a +1,400% increase in less than five months.
February’s performance was in every respect an evident parabolic rise, so much so that it inflated a true mini-bubble.
However, although this mini-bubble then burst in April, the price did not return to $0.7, but the decline stopped a couple of days ago just below $1.2.
Now the price has returned above $1.6 in anticipation of the merger in ASI.
AGIX and OCEAN have had a similar journey over the last twelve months.
On the price of NEAR, however, it does not seem that a real bubble has inflated, perhaps also because it is still at -74% from the highs of 2022.
RNDR, on the other hand, did not take advantage of the bull bounce of the last few days.
