Artificial intelligence-related cryptocurrencies saw a significant rebound 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, is up 6% in the past 24 hours, trading at $5.45 per coin at press time. Internet Computer Internet Computer (ICP), Render (RENDER), Bittensor (TAO) and FET recorded gains of 5.2%, 7.6%, 7.5% and 4% respectively during the same period.
Meanwhile, other tokens AI Livepeer (LPT), Virtuals Protocol (VIRTUAL), AI Rig Complex (ARC), and PAAL AI (PAAL) saw much higher gains of 20.7%, 20.5%, 19.5% and 16.7% respectively. All of these AI-related gains helped push the total market cap of AI coins up 25%, to $43.5 billion at the time of writing.
The AI sector has seen a boom after President-elect Donald Trump revealed nominations of White House advisers who will work alongside new AI and crypto czar David Sacks to centralize policy in artificial intelligence and strengthen the country’s leadership in transformative technologies.
The announcement, made in two Truth Social publications on December 23, included the appointment of Sriram Krishnan as Senior Policy Advisor for Artificial Intelligence, a newly created role within the House Office of Science and Technology Policy White.
Additionally, Michael Kratsios was named director of OSTP, while Lynne Parker was named executive director of the President’s Council of Advisors on Science and Technology, two offices that predate the Trump administration. Kratsios and Parker have already played key roles in advancing the AI industry in their respective positions.
The appointment of AI experts to key positions within the Trump administration has likely boosted investor confidence in the future of the AI sector. AI-related crypto assets often experience rebounds in response to positive developments and bullish news within the AI sector.
Another key factor likely to support 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 more than $40 billion.
xAI said the newly raised funds, which included participation from chipmaking giants NVIDIA and AMD, will be allocated to building advanced AI infrastructure and improving the development of its flagship models.
As crypto.news reported earlier, AI tokens had already hit an all-time high on November 28, following an exceptionally upbeat quarterly sales report from AI chipmaking giant Nvidia, which exceeded market expectations.
