Connect with us
Active Currencies 15827
Market Cap $3,609,153,357,205.80
Bitcoin Share 51.83%
24h Market Cap Change $0.63

AI coins hit record $42.19B market cap: Can THIS hinder further growth?

2min Read

The upcoming year is expected to be highly volatile for AI coins as the new administration implements policies to tackle economic challenges.

Share this article

  • AI coins have reached a record $42.19 billion in combined market cap, fueled by Nvidia’s “better-than-expected” report.
  • However, challenges loom, signaling a potentially volatile year ahead for AI coins.

Nvidia’s impressive third-quarter earnings of $35.1 billion have made waves across both the tech and crypto sectors, sparking a surge in Artificial Intelligence-related cryptocurrencies.

This stellar performance has driven the AI crypto market to new heights, with the combined market cap of AI tokens hitting a record $42.19 billion.

As Nvidia leads the AI revolution, tokens like NEAR Protocol, Internet Computer, and Bittensor are reaping rewards. These tokens are posting substantial double-digit gains.

AI coins poised for explosive growth 

ai coins

Source: CoinMarketCap

The timing aligns with an already bullish market sentiment, as Bitcoin reclaims the $97K range, pushing altcoins into the green.

AI coins have carved out a strong niche, with the largest AI-focused token nearing a $9 billion market cap, outperforming many competitors.

This momentum is expected to continue. Nvidia CEO Jensen Huang highlighted surging demand for the Blackwell chip, signaling stronger performance ahead.

With predictions of $7 billion in revenue for the next quarter, AI-driven tokens look poised for significant growth.

A key advantage for AI coins is their minimal reliance on Bitcoin’s price movements. This reduces their exposure to sudden market swings, making them less volatile and more stable.

However, they are not immune to broader economic challenges. Uncertainty surrounding regulatory policies and Trump’s new groundwork for tariff rates could raise consumption costs.

Economic vulnerabilities remain the major obstacle

The Personal Consumption Expenditures (PCE) price index for October increased by 0.2% month-over-month and 2.3% year-over-year, as reported by the U.S. Commerce Department on Wednesday.

Following this, the U.S. stock market experienced a dip, with the S&P 500 ending a week-long winning streak.

However, the crypto market remained unfazed, with Bitcoin reclaiming its footing as traders celebrated this year’s rally during Thanksgiving. 

Meanwhile, the Nasdaq composite dropped as traders took profits from big tech stocks. Nvidia, however, bucked the trend, posting a 1.38% gain in after-hours trading.

Despite this, the broader economic vulnerabilities impacting the stock market also affect the outlook for AI coins. 

These digital assets, closely linked to macroeconomic conditions, face increasing risks as the new administration moves forward with addressing regulatory frameworks

The market may be more susceptible to volatility in the year ahead, challenging AI coins’ ability to break resistance and continue their growth trajectory.

Share

Ripley is a full-time crypto-news journalist with a fascination for blockchain tech and how it makes lives easier on multiple levels. She has been trading since 2019, and has a keen eye for market movements and analyses.
Read the best crypto stories of the day in less than 5 minutes
Subscribe to get it daily in your inbox.
Please check the format of your first name and/or email address.

Thank you for subscribing to Unhashed.