Thanks, Nvidia: These 3 crypto AI tokens are up 132% or more this year

Bitcoin (CRYPTO: BTC) it may have been stuck in the $60,000 to $65,000 range, but crypto investors can still find opportunities. Some newer crypto tokens with artificial intelligence (AI) connections are still alive, and some of them are up more than 132% for the year.

A big reason for this has been the huge enthusiasm around the investment thesis of artificial intelligence. In the same way that equity investors have embraced Nvidia (NASDAQ: NVDA ), crypto investors are now embracing new crypto tokens that they think can benefit the most from AI. With that in mind, here’s a closer look at three of the most popular AI crypto tokens that have seen the biggest gains recently.

Render

Arguably the most popular AI crypto token is Render (CRYPTO: RNDR) — is up 132% for the year. With a total market cap of $4.5 billion, Render now ranks as the top 25 cryptocurrencies. Given its recent climb, some investors now refer to Render as the “Nvidia of crypto.” As you might have guessed from the name, Render provides GPU-based rendering solutions for studios, artists, and creators.

But that’s not why crypto investors are so excited about Render. The thinking now is that the same decentralized GPU computing power used for rendering can also be used for AI. If you want to train a large linguistic model (LLM), for example, you’ll need a lot of “GPU compute,” which is the raw computing power required for modern AI solutions.

So it’s easy to see why Render’s performance is starting to look a lot like Nvidia’s (which has become almost synonymous with all things AI). Nvidia is the ultimate source of all that GPU-based computing power, whether it’s used for rendering or AI.

Get it

Get it (CRYPTO: FET) is up an astounding 208% for the year and now ranks as one of the top 50 cryptos by market cap. Fetch.ai is building what it refers to as an “open, permissionless, decentralized machine learning network with a crypto economy.” This is a mouthful, but it simply means that Fetch.ai is a new platform for AI products and services. This includes large datasets for training LLMs and sophisticated AI robots known as agents.

The way you pay for these AI products and services is with the Fetch.ai token. You can think of Fetch.ai as a digital currency for the emerging AI economy. Thus, the greater the demand for all things AI, the greater the demand for the Fetch.ai token.

While there is definitely a demand for AI at the consumer level (who hasn’t played with AI chatbots?), the real demand will come from companies looking to undergo AI transformations. This is where Nvidia stands out because these companies often use Nvidia products for new AI-related projects.

The story continues

According to Fetch.ai, the highest growth opportunities are in sectors such as logistics, transportation and smart energy grids. As evidence of its focus on the growing industry, Fetch.ai has recently partnered with German companies Bosch AND Deutsche Telekom on an AI platform.

Since 2017, Bosch has partnered with Nvidia on AI self-driving cars, so this could be just one example of an area where Fetch.ai gets a big boost. In the past, Deutsche Telekom has collaborated with Nvidia on “smart city” concepts, so this could be another area.

SingularityNET

Finally, there is SingularityNET (CRYPTO: AGIX), which has increased by 193% for the year. It is now ranked as one of the top 75 cryptocurrencies, with a market cap of $1.2 billion. However, as it is not available for trading on popular cryptocurrency exchanges such as Coinbase Global (NASDAQ:COIN)may not be suitable for all crypto investors.

In terms of overall AI strategy, SingularityNET is knocking it out of the park. It is pushing the idea of ​​artificial general intelligence (AGI), which is leaps and bounds ahead of the current version of AI, known as generative AI (better known as the variety that includes ChatGPT).

In fact, according to futurists like Ray Kurzweil (now at Google), AGI implies a future in which a single computer will be smarter than all humans combined. He will have access to all human knowledge ever created and, as a result, will be able to create truly innovative solutions. To power that level of AI will probably require a lot of Nvidia GPUs.

What’s next for crypto AI tokens?

As long as Nvidia stock’s performance continues to impress, it’s safe to say that investors will be on the lookout for cryptos that are most likely to benefit from the excitement around AI. For investors who think Nvidia is the only AI stock they should own, then it makes sense to also focus on AI crypto-tokens with indirect or direct ties to Nvidia.

However, just keep in mind that AI is still a relatively new industry and trends can come and go. Many companies claim to be the “next Nvidia,” so it’s likely that the AI ​​investment thesis will change and evolve over time. For now, though, the three crypto tokens highlighted above seem to be doing the best job of capitalizing on the new enthusiasm around AI.

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Dominic Basulto has positions in Bitcoin and Fetch. The Motley Fool has positions in and recommends Bitcoin, Coinbase Global, Fetch, Nvidia and Render Token. The Motley Fool has a disclosure policy.

Thanks, Nvidia: These 3 Crypto AI Tokens Are Up 132% or More This Year was originally published by The Motley Fool