AI Tokens (AIT) Show Mixed Performance Amid Nvidia’s (NVDA) Record-Breaking Profits

<ul>
  <li>AI tokens experienced mixed performances last week, with AGIX and FET gaining 11%.</li>
  <li>Since February, the trading volume for AI tokens has climbed to $8 billion per week.</li>
  <li>AI tokens’ market share on Binance fell to 39%, while Korean and US exchanges increased.</li>
</ul>
<p><strong>Explore the latest trends in AI tokens, including significant market shifts and performance insights.</strong></p>
<h2><strong>AI Tokens Show Mixed Performance Amidst Market Shifts</strong></h2>
<p>While Nvidia Corporation (NVDA) reported better-than-expected profits, AI-linked tokens experienced mixed performance last week. Both the AGIX decentralized AI marketplace from SingularityNET and the Fetch.ai (FET) AI-focused cryptocurrency protocol had 11% increases. However, Render (RNDR) and Akash Network (AKT) had lesser returns, and NEAR ended the week in the red.</p>
<h3><strong>Trading Volume Surge and Market Share Shifts</strong></h3>
<p>Even with the uneven performance, AI tokens have largely outperformed this year. Year to date, they have enjoyed gains ranging from 60% to 250%, even outperforming the stellar performance of Nvidia. Since February, the average weekly transaction volume for these tokens has increased dramatically, from a historic low of $300 million in the middle of 2023.</p>
<h3><strong>Shift to Regulated Exchanges</strong></h3>
<p>Remarkably, global AI trading volumes have shifted noticeably to regulated exchanges. While Binance continues to dominate rapidly-expanding market niches like meme tokens, as of last week, its market share for AI tokens fell from over 70% a year ago to 39%. By contrast, US and Korean exchanges have been expanding.</p>
<h3><strong>Correlation with Nvidia and Other Market Dynamics</strong></h3>
<p>Although in February the 60-day correlation between AI tokens and Nvidia reached a multi-month high, it is still quite low, ranging between 0.2 and 0.3. Remarkably, this year, Worldcoin (WLD), which positions itself as a global identification and financial network for an AI-driven society, has shown a stronger correlation with NVDA than most other AI tokens.</p>
<h3><strong>Conclusion</strong></h3>
<p>The phenomenal performance of Nvidia and developments in AI technology are two of the reasons behind the spike in AI tokens. With a 769% increase in net income year over year, Nvidia has recently achieved financial success that has cemented its leadership position in the AI ecosystem.</p>