AI Tokens Rebound Amid Bitcoin Rally

Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) are leading the rally.

By: Joel Lim • November 19, 2024

Tokens linked to artificial intelligence (AI) are soaring, outperforming most other categories.

AI meme coins have risen 50% in the past seven days, making them the third-best-performing category in CoinGecko. Leading the way are Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER).

These AI memecoins are cryptocurrencies that are either created by or promoted by AI systems. AI meme coins often incorporate AI-generated narratives created by bots like Truth Terminal.

The more serious category of tokens, which are actually creating tech at the intersection of AI and crypto, have risen by 134.2% since this year’s all-time low in August, when the sector’s market capitalization dropped to $18.19 billion, according to Coinmarketcap data. Their market cap has now grown to $42.6 billion, with coins like Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER) leading the rally.

The surge in AI token prices is thanks to the ongoing Bitcoin bull market, which has restored investor confidence and positive public sentiment in the crypto industry.

Why AI Tokens Are Performing Well

AI tokens are benefitting from increased public attention on crypto following the ongoing Bitcoin bull run and the results of the U.S. presidential election. They now appear on course to capture their previous all-time high market capitalization of $45 billion set on March 15.

The Perfect Time For A Market Rebound

The crypto market has enjoyed positive price action recently, with Bitcoin leading the charge. The token’s value rose quickly in the aftermath of the US Presidential election, hitting an all-time high of $94,002.87 earlier today.

Regulatory clarity, growing investor confidence, and positive public sentiment are majorly responsible for the recent surge in market prices.

Although the sector is performing increasingly well in the market right now, AI tokens account for just 1.36% of the crypto market, valued at $3.27 trillion.

Currently, there are seven AI tokens with over a $1 billion market capitalization, including Near Protocol (NEAR), Internet Computer (ICP), Render (RENDER), Theta Network (THETA), Artificial Superintelligence Network (FET), Bittensor (TAO), Injective (INJ), The Graph (GRT) and Akash Network (AKT).