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crypto.news 2024-12-24 12:42:39

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

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

Artificial Intelligence-related cryptocurrencies saw a significant rally over the past day as several new developments surrounding the AI industry reignited interest among its investors. NEAR Protocol NEAR Protocol ( NEAR ), the largest AI coin by market cap, rose 6% in the last 24 hours, trading at $5.45 per coin at press time. Internet Computer Internet Computer ( ICP ), Render ( RENDER ), Bittensor ( TAO ), and FET hit gains of 5.2%, 7.6%, 7.5% and 4% respectively in the same period. Meanwhile, other AI tokens Livepeer ( LPT ), Virtuals Protocol ( VIRTUAL ), AI Rig Complex (ARC) and PAAL AI (PAAL) recorded much higher gains of 20.7%, 20.5%, 19.5%, and 16.7% respectively. All these gains across AI-related helped push the total AI coins market cap up 25% standing at $43.5 billion at the time of writing. The AI sector surged after President-elect Donald Trump revealed White House advisory appointees who will work alongside the incoming AI & Crypto Czar, David Sacks , to centralize artificial intelligence policy and reinforce the nation’s leadership in transformative technologies. You might also like: Binance survey: 45% new users joined in 2024, AI tokens heralded as most popular pick to lead 2025 The announcement, made across two Truth Social posts on Dec. 23, included the appointment of Sriram Krishnan as senior policy advisor for Artificial Intelligence, a newly created role within the White House Office of Science and Technology Policy. Further, Michael Kratsios was named Director of the OSTP, while Lynne Parker was appointed executive director of the Presidential Council of Advisors for Science and Technology—two offices that predate the Trump administration. Both Kratsios and Parker have previously played key roles in advancing the AI industry in their respective positions. The appointment of AI experts to key positions in the Trump administration has likely strengthened investor confidence in the future of the AI industry. AI-related crypto assets often experience rallies in response to positive developments and bullish news within the AI sector. Another key factor likely supporting the recent surge in AI tokens is the major funding announcement from xAI, the AI startup founded by billionaire Elon Musk. On Monday, the company revealed that it had secured $6 billion in its latest funding round bringing its total valuation to over $40 billion. xAI said that the newly raised funds, which included participation from chip-making giants NVIDIA and AMD, will be allocated toward building advanced AI infrastructure and enhancing the development of its flagship models. As reported by crypto.news earlier, AI tokens previously reached an all-time high on Nov. 28, following an exceptionally bullish quarterly sales report from AI chip-making giant Nvidia, which surpassed market expectations. Read more: AI tokens market tanks 14.6% as Nvidia faces anti-trust probe in China

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