Crypto AI Tokens Gain Attention as DOGE and SHIB Rally Begins to Slow Down

 Recent data from CoinGecko reveals a notable surge of 25% within the artificial intelligence (AI) token category over the past 24 hours, contrasting with bitcoin's modest 0.3% increase. Notably, tokens associated with AI technologies, such as FET and AGIX, are experiencing significant price hikes. This surge is attributed to speculation surrounding the potential inclusion of a crypto-related product in an upcoming Nvidia conference later this month, despite the inherent inability of AI to operate directly on the blockchain.

This bullish trend in AI tokens coincides with a downturn in meme coins, which have dominated recent crypto market gains. The anticipation of a crypto project's presence at the Nvidia conference is driving traders to invest in AI-linked tokens, leading to a substantial increase in the CoinGecko AI category's valuation.

Tokens like Fetch.AI (FET), Render Network (RNDR), Sleepless AI (AI), and SingularityNET (AGIX) have surged by up to 40%, each showcasing unique applications of AI technology, ranging from virtual companions to graphic processing card marketplaces.

Reports suggest that developers of crypto AI projects will be participating in the chipmaker's conference or speaking on panels during the event, which is scheduled from March 17 to 21. This surge contrasts with the minimal gains of 0.3% in bitcoin and 0.4% in the broader CoinDesk 20 index.

Despite the fact that AI cannot operate directly on a blockchain, AI tokens remain a focal point for crypto traders due to the anticipated role of AI in driving significant innovations in the global economy in the years ahead. Moreover, developments in traditional AI companies, such as OpenAI, often influence the valuation of AI tokens, as traders view them as a proxy bet on the industry.

Notably, the recent inflows into AI tokens seem to have interrupted the multiweek rally of meme coins, including dogecoin (DOGE), pepecoin (PEPE), and dogwifhat (WIF), which had surged alongside bitcoin's brief attainment of all-time highs. However, the recent data indicates a downturn in these meme coins, with DOGE, SHIB, and PEPE experiencing losses of over 15% in the past 24 hours. Additionally, there has been a decline in open interest on DOGE-tracked futures, signaling a reduction in market participation since Tuesday's record highs.