AI crypto market cap up over 25% amid major developments in the sector

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As a seasoned crypto investor with a knack for spotting trends in the tech industry, I must say that the recent surge in AI-related cryptocurrencies has caught my attention. With my fingers on the pulse of the market and a keen eye for significant developments, I’ve been closely following the rise of these digital assets.

Over the last 24 hours, there’s been a notable surge in the value of digital currencies linked to Artificial Intelligence, as fresh advancements within the AI sector have sparked renewed enthusiasm among investors.

In the last 24 hours, NEAR Protocol, the largest digital currency tied to artificial intelligence by market value, experienced a 6% increase, with each coin trading at approximately $5.45 at the time of reporting. Simultaneously, Internet Computer (ICP), Render (RENDER), Bittensor (TAO), and FET saw growth of 5.2%, 7.6%, 7.5%, and 4% respectively during the same duration.

In the meantime, tokens such as Livepeer (LPT), Virtuals Protocol (VIRTUAL), AI Rig Complex (ARC) and PAAL AI (PAAL) experienced significant increases, with gains of approximately 20.7%, 20.5%, 19.5%, and 16.7% respectively. Collectively, these rises in AI-related tokens contributed to a surge in the total market capitalization of AI coins, which reached $43.5 billion at the time of this report.

After President-elect Donald Trump announced his advisors for the White House who would collaborate with the appointed AI & Crypto Chief, David Sacks, the AI sector experienced a boost. This team aims to streamline artificial intelligence policy and strengthen America’s dominance in groundbreaking technologies.

On December 23rd, the statement was shared over two posts on Truth Social, revealing that Sriram Krishnan had been appointed as the senior AI policy advisor – a brand new position in the White House Office of Science and Technology Policy.

Additionally, Michael Kratsios took on the role as Director of OSTP, with Lynne Parker being named Executive Director of the Presidential Council of Advisors for Science and Technology. These offices have existed prior to the Trump administration. In their previous roles, both Kratsios and Parker have made significant strides in promoting the development of Artificial Intelligence.

Appointing AI specialists to crucial roles within the Trump administration may have bolstered investor trust regarding the future growth of the AI field. Cryptocurrencies linked to AI technology tend to surge when there are favorable changes or optimistic announcements related to the AI industry.

A significant factor possibly fueling the recent rise in AI-related tokens is the substantial investment announcement made by xAI, an AI startup established by Elon Musk, a billionaire. On Monday, they disclosed that they had raised $6 billion in their most recent funding round, which increased their overall valuation to more than $40 billion.

As a crypto investor, I’m thrilled to share that xAI has announced the distribution of freshly acquired funds, with notable contributions from tech heavyweights like NVIDIA and AMD. These funds are earmarked for constructing cutting-edge AI infrastructure and refining our premium AI models, which I believe will significantly boost their performance.

According to a previous article from crypto.news, the value of AI tokens peaked at a record high on November 28, after Nvidia, a leading company in AI chip manufacturing, published an outstanding quarterly sales report that exceeded market predictions.

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2024-12-24 15:51