Shiba Inu, Dogecoin Caged As AI Coins Like Fetch.AI And Render Network Excite Market: Here's Why

Shiba Inu, Dogecoin Caged As AI Coins Like Fetch.AI Excite Market: Here's Why

by Murtuza Merchant Benzinga Staff Writer

Zinger Key Points

Reports indicate AI crypto project developers will participate in Nvidia's event, driving interest in AI-linked cryptocurrencies.
Meme coins like Dogecoin and Shiba Inu see a downturn, losing over 15% in value amid AI token rally.
Discover Fast-Growing Stocks Every Month

The cryptocurrency market has shifted gears, with artificial intelligence (AI) tokens surging on Thursday, while meme coins, like Dogecoin DOGE/USD and Shiba Inu DOGE/USD, saw a decline.

What Happened: This trend coincides with an upcoming Nvidia conference where crypto AI projects are expected to have a presence.

According to CoinMarketCap, the category for AI-linked tokens saw a 13% increase over the last 24 hours.

Projects such as Fetch.AI FET/USD, Render Network RNDR/USD, Sleepless AI AI/USD, and SingularityNET AGIX/USD have seen their token values climb by up to 40%.

These initiatives are known for their diverse applications of AI, ranging from offering virtual companions to creating marketplaces for graphic processing units.

The buzz around these AI tokens is fueled by reports from Lookonchain, suggesting that developers of crypto AI projects will be participating in Nvidia's event, scheduled for March 17-21.

The growing interest in AI tokens is attributed to the anticipation that AI technology will play a crucial role in driving innovation across the global economy in the foreseeable future.

Despite the unclear relationship between AI and blockchain technology, with AI not being operable on blockchain, developments in traditional AI firms like OpenAI have led to increased trading activity in AI tokens, as traders view them as a proxy investment in the AI sector.

Also Read: Bitcoin ETFs Dominate With Strong Inflows, Leaving Gold ETFs In The Dust

Why It Matters: This enthusiasm for AI tokens has seemingly impacted the momentum of meme coins, which had been enjoying a multiweek rally.

Popular tokens such as Dogecoin, Pepecoin PEPE/USD, and Dogwifhat WIF/USD had seen significant gains, more than doubling in value following Bitcoin's brief breach of its all-time highs.

The appeal of meme coins to retail traders, often attracted to the crypto market by Bitcoin BTC/USD rallies, was cited as a key factor behind their surge.

However, the landscape appears to have shifted, with DOGE, SHIB, and PEPE experiencing a downturn, losing over 15% of their value in the past 24 hours.

Additionally, a decrease in open interest on DOGE-tracked futures by $400 million from record highs since Tuesday indicates a potential withdrawal of investment from the meme coin sector.

Image created using artificial intelligence with Midjourney.