Our experts tell us how the record rise in Nvidia stocks and hype around AI affected prices of cryptoassets

Nvidia has become the first graphics processor manufacturer whose market capitalization has approached $1 trillion. Its devices have recently been used by cryptocurrency miners. But now the growth of the company’s shares is due to the growth of artificial intelligence technology.

On Tuesday, May 30, price of Nvidia stocks skyrocketed to a historic high. In its quarterly report, the company said that the proliferation of artificial intelligence technology is translating into record sales. And its net income for the quarter was markedly higher than what analysts had predicted.

Nvidia’s developments have spread in the video game industry, the field of professional visualization. As well as in the field of high-performance computing and the automotive industry. In this case, Nvidia’s onboard computers are used as the basis for unmanned cars. The company supplies technology to major market players such as Apple, Microsoft, Alibaba and Amazon.

In late 2006, Nvidia allowed third-party developers to use the processing power of its graphics processing units (GPUs) not only for graphics optimization but also for other purposes. Nvidia processors are good at a lot of simultaneous calculations. And in this they noticeably lose to central processors, the leading manufacturer of which is Intel.

Notable success of Nvidia outside of the video game industry has brought the company mining cryptocurrencies. And where the GPU has also proven its effectiveness. In 2020, amid rising prices for Bitcoin and other cryptocurrencies, Nvidia surpassed Intel in market value. And its quotes continued to rise, reaching a record high of almost $330 per stock at the end of 2021.

Demand for Nvidia graphics cards was supported by miners. Who assembled cryptocurrency mining farms based on the Proof-of-Work (PoW) algorithm from the devices. The most profitable of these has always been Ethereum (ETH). But last September, developers planned to move it to Proof-of-Stake (PoS). After that, the need for mining to issue new coins disappeared. And miners were forced to switch to much less profitable coins or refused to mine cryptocurrencies using GPUs in principle.

The fall in excitement around video card mining, as well as the collapse of the crypto market last year, brought down Nvidia’s stocks. But now the wave of AI has reawakened investor enthusiasm. Since the beginning of the year, the company has increased its market share by $220 billion. By comparison, Ethereum has a market capitalization of $228.3 billion. Nvidia stock is up 165% in 2023 alone. Nvidia’s capitalization now stands at $939.3 billion, which brings it closer to the $1 trillion mark.

AI and cryptocurrencies

On May 28, Nvidia unveiled several technologies related to artificial intelligence at Computex 2023. Among them is the Avatar Cloud Engine service. Which allows you to give the intelligence of side characters in video games. As well as the DGX GH200 supercomputer for generative AI, the Spectrum-X platform for cloud providers. And the MGX architecture for creating metaverse and a few others.

The flow of news around Nvidia has also affected the cryptocurrency market. Project tokens, which aggregators categorize as “artificial intelligence,” rose in value in less than a week. And some of them showed up to 60% growth. An example of such an asset was the AKT token of the Akash Network project. The developers position it as an open network for trading computing power.

The most capitalized assets in the category also benefited from positive news from Nvidia. The token of the SingularityNET project (AGIX), “the first decentralized artificial intelligence marketplace.” Which runs on the Cardano blockchain, rose in value by 10%. Fetch.ai (FET), a coin platform with machine learning algorithms, gained more than 6% in less than a week. And the OCEAN token used by the Ocean Protocol data economy project rose nearly 9%.

Similar trends took place in the market at the beginning of the year amid the mass spread of chatbots with artificial intelligence ChatGPT. Which still enjoys notable popularity, including in the cryptocurrency community.

Largest crypto asset in AI category

The largest crypto-asset in the AI category is the Render token (RNDR) of the Render Network project from OTOY. Its capitalization exceeds $900 million and it is traded on leading cryptocurrency exchanges. And its price has risen almost seven-fold since the beginning of the year.

OTOY provides cloud-based graphics rendering solutions. These are used by visual effects creators, artists, animators, designers, architects and engineers, according to the company’s website. Its products, which also involve AI. The company Meta also uses them.

As part of the Render Network project, OTOY developers have modified the code of their cloud computing platform for GPU rendering. And they did it so that RNDR tokens could be used to pay for the service, thus creating demand for the asset.

In 2021, OTOY released the Octane X Classic rendering app on the App Store. And which also uses Render Network technology. Also getting the project into Apple’s app store was a successful marketing move for RNDR. The token has risen more than 60 percent since May 13. This happened when The Wall Street Journal’s sources reported. That Apple would unveil a mixed reality headset at the WWDC 2023 event in early June. This was largely contributed to by a number of speculations that. That the device could, in theory, also use some of the Render Network’s developments.

Our experts note that in general, the coins of blockchain projects, which in one way or another involve artificial intelligence. Since the beginning of the year proved to be the group of the most successful in terms of crypto-assets investment. Along with tokens of the management of liquid stacking services.

You can still tell the difference between real people and deepfakes in videos. But soon the AI technology will become so advanced that even the human eye will stop seeing the substitution

The deepfakes technology used by cryptocurrencies to bypass verification (KYC) on crypto exchanges. Such as Binance, for example, will become more and more sophisticated. This was warned by Binance’s director of security Jimmy Su, Cointelegraph writes.

The technology behind deepfakes consists of artificial intelligence (AI) synthesizing human images. How it works: the program combines several photos of a person with different facial expressions and makes a video out of them.

Cases when fraudsters use this technology in an attempt to bypass the verification process at the exchange have increased, Su told the publication. According to him, the attackers find photos of the victim on the Internet and use them to create dipfakes.

He explained that the tools have become so advanced. And that they can even properly respond in real time to audio instructions when verifying an applicant.

“Some checks require the user, for example, to blink his left eye or look left or right, look up or down. Deepfakes today are advanced enough to execute those commands,” Su said.

So far, he said, humans can still detect deception. But the AI will evolve to the point where it will be impossible for humans to tell a fake. Su acknowledged that this is a very serious problem and for now he sees the solution only in training users in risk management.

Our experts point out that Microsoft founder Bill Gates said in January. That the development of AI is the most important innovation in recent years. And one of the pioneers of neural networks and artificial intelligence technology, Jeffrey Hinton. Now he has also joined those who see such advances as a danger to humanity. He fears that the Internet will be flooded with fake photos. As well as videos and texts. Which will be created by AI, and the average person “will no longer be able to know what is true and what is not.”

Elon Musk is gathering a team of researchers and engineers in the field of artificial intelligence. He is also negotiating with a number of investors to invest in a new startup

American billionaire Elon Musk plans to launch a startup in the field of artificial intelligence. Which will compete with the creator of ChatGPT OpenAI. This is reported by The Financial Times, citing its own sources.

The Tesla founder and Twitter owner is gathering a team of researchers and engineers in the field of artificial intelligence. Including the British company DeepMind, the interlocutors told the FT.

For the new project, Musk bought thousands of powerful graphics processors from Nvidia. GPUs are high-end chips. Which are necessary to achieve Musk’s goal of creating a large language model. And also artificial intelligence systems capable of processing huge amounts of content. Including the creation of human-like texts or realistic images, the FT specifies.

Elon Musk is also in talks with a number of investors from SpaceX and Tesla to invest in the new startup. “A bunch of people are investing in it, and they’re excited,” the source noted.

Our experts note that at the end of March, Elon Musk signed an open letter from experts and representatives of the IT industry. It said that artificial intelligence systems could pose a danger to society. They called on all AI labs to stop training systems more powerful than GPT-4. Until common security protocols are established.

LayerZero is a project whose solutions use the leading DeFi protocols for conducting cross network transactions. It will spend funds to promote in Asia and add to the team

Crypto protocol developer LayerZero has raised $120 million at a valuation of $3 billion, The Block reports. LayerZero Labs developers have closed a Series B funding round. Thirty-three investors participated in this funding round, including a16z Crypto (Andreessen Horowitz), Sequoia Capital, Circle Ventures, Samsung Next, OpenSea and Christie’s.

LayerZero is a protocol for exchanging data between blockchains from different ecosystems. The Series A funding round for the project took place in March 2022. At the time, LayerZero raised $135 million at a valuation of $1 billion.

Leading DeFi protocols such as Uniswap, SushiSwap and PancakeSwap use LayerZero for cross-network transactions. LayerZero Labs co-founder and CEO Brian Pellegrino said. That the company now plans to expand its cooperation with gaming projects and for this purpose will increase the number of employees from 40 to 70.

Also the company will direct the received funds to expand its presence in the Asia Pacific region.

LayerZero is also one of the potential contenders for the release and distribution of their own tokens. The project is often mentioned in topical discussions of possible airdrops on social networks. Commenting on the fundraising, Pellegrino declined to say when his token would launch.

Other Perspective Projects that have not yet launched their token

Our experts note that earlier this spring hardware wallet maker Ledger reported raising funds from investors. As well as the development-oriented artificial intelligence (AI) crypto project Fetch.ai.

Ledger has raised the bulk of the planned €100 million at a valuation of €1.3 billion, and intends to continue fundraising in April. The company will use the money raised to develop its business and expand its distribution network. As well as increasing production and improving its products.

Fetch.ai has received $40 million from the investor, which will be spent on blockchain infrastructure development. It will also be used to create and deploy automated applications using artificial intelligence.

Also on April 4, it became known that Dragonfly Capital invested $10 million in the cryptocurrency derivatives exchange Bitget. The platform will spend them on the development of spot trading, the creation of new profitable products. As well as supporting startups and attracting new users to cryptocurrency industry.

According to CoinGecko, Bitget ranks fifth among derivatives exchanges in terms of open interest (OI) and trading volume. At the same time, the Japanese regulator in March issued a warning to the site for working with Japanese residents without proper registration.

New trend on the crypto market or how popular AI sphere among investors affects the prices of cryptocurrencies

ChatGPT, an artificial intelligence-based chatbot with a billion-dollar investment from Microsoft. In January of this year, it gained 100 million users, becoming the fastest-growing Internet app in history.

In early 2023, digital currencies and artificial intelligence spawned a single breakthrough in the crypto-asset market. And the domestic tokens of AI-related development projects continue to rise in value.

Justin Sun, head of the Huobi exchange and creator of the Tron (TRX) coin, posted on Twitter the idea of a mechanism to create an “AI-centric decentralized payment system” for ChatGPT.

According to his idea, such an environment would create a decentralized payment system. It would thus be secure, reliable, tamper-proof, censor-proof, and able to support AI. This will build a new decentralized, intelligent financial ecosystem.

Last week, OpenAI, the developer of ChatGPT, announced that it would begin charging a $20 monthly subscription to cover computing costs. Until then, the chatbot, launched in late November, had remained free.

Tokens that associate themselves with AI are rising in value

In general, the coins of blockchain projects, which in one way or another involve artificial intelligence. Since the beginning of this year have been the group of the most successful crypto-assets in terms of investment.

Leader in terms of market capitalization in this category, according to CoinGecko, is SingularityNET project coin (AGIX). In the past week alone, this asset rose in value almost 2.5 times, reaching 45 cents. Although it was trading at 7 cents less than a month ago. The developers of the service position it as “the first decentralized artificial intelligence marketplace”. Which is based on Cardano blockchain.

Tokens from the other most capitalized AI projects also continue to rise. This is happening even despite the short-term decline in Bitcoin and the crypto market as a whole. Fetch.ai (FET), a coin platform with machine learning algorithms, gained more than 65% in the past month. And the OCEAN token, used by the Ocean Protocol “data economy” project, has more than doubled since the beginning of January.

Our experts note that projects with relatively low market capitalization are also included in the growth trends. Due to their lower liquidity, large purchases of their tokens inevitably lead to strong price hikes. Thus, the rate of AIRI token belonging to the barely known aiRight platform increased several times in just one day. Its developers declare the use of AI in the creation of NFT. A similar scenario was observed with the IMGNAI token, created to pay for the creation of anime-style images by a neural network project under the unsophisticated name of Image Generation AI.

Success of AI caused the growth of shares not only in crypto companies

Success at ChatGPT has spurred investor interest in AI-based technologies, not just in the crypto market. Last month, the share price of struggling media company Buzzfeed surged. This came after it announced plans to use artificial intelligence to create content. Similarly, shares of little-known public companies soared after they added the word Blockchain to their name. This was at peak cryptocurrency markets in early 2018 and late 2021.

That said, the hype around AI is borne out by the numbers. In January, JPMorgan Bank conducted its annual survey of professional traders about upcoming trends in electronic trading. It surveyed 835 industry representatives from 60 regions around the world.

AI, according to the survey, outperforms all other major categories. For its 53% citation rate, it far outpaces API integration (14%) and blockchain (12%). Only 8% of respondents confirmed that they trade cryptoassets.