• The prices of AI tokens like FET and AGIX have soared on speculation that a crypto-product will be featured at a Nvidia Conference later this month, even though AI cannot run on the Blockchain.
  • The inflows of funds into these projects are accompanied by a drop in meme coins. These have been the leading crypto gainers in the last week.

The expectation that a crypto-project will be mentioned at a Nvidia (NVDA), conference in the next few days is driving traders to bid for tokens linked to artificial intelligence (AI). CoinGecko’s category of AI-linked coins has risen by 25% in just 24 hours.

Tokens for Fetch.AI(FET), Render Network RNDR, Sleepless AI AI (AI), and SingularityNET AGIX climbed up to 40%. These projects claim that AI is used in various ways. For example, they provide a virtual partner and are a marketplace for graphics processing cards.

According to Lookonchain , the reason for the sudden surge is that reports indicate that developers of crypto AI projects are either attending the conference at the chipmaker or participating in panels. The event is scheduled for March 17-21. The increase compares to bitcoin’s 0.3% gain and a 0.4% rise in the CoinDesk 20 broad-based liquid indicator of major tokens.

The AI tokens are a popular topic for crypto traders, as the technology is expected in the future to be a key driver of innovation in the global economy. The relationship between AI, crypto and blockchain is not clear: Artificial intelligence cannot be run on a Blockchain. Nevertheless, the growth of companies such as OpenAI and traditional AI companies is driving AI tokens. Traders use them to make a proxy wager on the industry.

Last month, tokens rose as well after Nvidia exceeded expectations for its first-quarter earnings and fourth-quarter earnings.

data show that the inflows of AI tokens have slowed down a rally lasting more than a week for meme coins.

Over the last few weeks, tokens like dogecoin(DOGE), dogwifhat(WIF) and pepecoin(PEPE) have seen a more than two-fold increase in value as bitcoin briefly reached its highest point. Some analysts attributed the rise to the fact that meme coins are more friendly to retail investors, who typically flock to crypto markets when bitcoin rallies.

For now, the rally appears to be over. Data shows that DOGE, SHIB, and PEPE have lost more than 15% over the last 24 hours. Open Interest for DOGE-tracked Futures is down $400 million since Tuesday, another sign that money has left the market.

Sheldon Reback is the editor.