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The anticipation of Nvidia’s Q2 earnings report on August 28 has further fueled this positive sentiment.
The market cap of artificial intelligence (AI) and big data cryptocurrencies has seen a significant rebound, increasing by 79.7% in just three weeks to reach approximately $32 billion. This surge in value comes as investor confidence in the sector has revived. Earlier this month, the market cap had plummeted to a yearly low of $18.21 billion, largely due to the broader downturn in Bitcoin and the overall crypto market. The upcoming NVIDIA Q2 earnings report could further boost the momentum.
Recovery Driven by Bitcoin’s Performance
The recent recovery in the AI and big data token market mirrors the Bitcoin price rebound. Recently, investor sentiment has notably shifted from “extreme fear” to “neutral,” as shown by the Fear and Greed Index. As Bitcoin’s value climbed, the market cap of AI-related tokens soared past $38 billion by August 25.
At the same time, Bitcoin’s open interest seems to have declined slightly, signaling a shift in investor focus toward altcoins, particularly AI tokens. Notably, significant whale transactions, such as a recent $2.38 repurchase of FET tokens, highlight a renewed optimism in the sector.
Leading this growth are tokens like Near Protocol (NEAR), which saw a 15% increase in the past week, now valued at $5.2 billion, Internet Computer (ICP), with an 8% rise, now at $3.7 billion, Artificial Superintelligence Alliance (FET), up by 52% to $3.4 billion, and Bittensor (TAO), which gained 11% to reach $2.8 billion.
The AI sector comprises various categories, including AI infrastructure, data analytics platforms, and decentralized AI services, all of which have gained massive investor attention in the past few years. Investors view these tokens as innovative alternatives to traditional web2 options.
This growing interest is driven by AI tokens’ potential to mirror the success of their web2 counterparts like OpenAI. In addition, traditional cryptocurrencies are facing increased regulatory and market hurdles, further adding to the growing interest in AI tokens.
NVIDIA Q2 Report Set to Fuel AI Rally
The anticipation of Nvidia’s Q2 earnings report on August 28 has further fueled this positive sentiment. Nvidia, a key player in AI hardware, is expected to report revenue of around $28.7 billion, reflecting a 112% increase from the previous year, along with adjusted earnings per share of about $0.65, a 139% rise. Positive earnings could drive additional gains in AI tokens.
Previous earnings reports from Nvidia spurred a significant rally in AI tokens, highlighting how the company’s performance influences investor sentiment and boosts confidence in AI-driven cryptocurrencies. Investors are closely watching these developments as an indicator of the broader AI sector’s health. The coming weeks will be crucial in determining whether the recent surge in AI token values represents a temporary spike or the beginning of a longer-term trend.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
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Leon is a seasoned blockchain writer and reporter, dedicated to uncovering the stories behind decentralized technologies. He excels in providing in-depth analysis and thought leadership in blockchain media. His reporting sparks meaningful conversations and fosters a deeper understanding of the transformative potential of blockchain.
