FET Leads The AI Token Rally, What Causes The Uptick?

This week has seen a sharp increase in bullishness for the Artificial Superintelligence Alliance (FET), a blockchain-based platform that makes artificial intelligence more accessible to all.

                                                                                                    Source: CoinMarketCap 

The FET price continued to rise and saw a breakout, propelled by the growing demand and fresh information.

Last week, the token showed a range breakout. A double-bottom formation and a sizable rebound from the $0.760 demand zone came next.

After that, it kept gaining momentum and passed the $1 declining trendline, trapping the bear cartel.

On August 23, a participant in the Artificial Superintelligence Alliance revealed the FET Innovation Lab. It was mentioned that the development of AI Agent solutions will be sparked by this hub.

This platform has recently devised strategies to strengthen its influence across the board in order to aid in this endeavor.

It was disclosed that the company has an annual budget of $10 million set aside for projects involving the use of its technology stack to create AI agents.

Rising demand also contributed to this notable development growth and the price increase. The majority of AI-based cryptocurrency tokens increased in value over the weekend as they gained positive momentum and moved higher.

The price of FET is up more than 8% on the last day. On the other hand, its trading volume increased by more than 54%, supporting the growing confidence of investors. At $1.30, the token changed hands, setting the stage for the next sessions to see the $2 threshold.

The token was valued at 2.63 billion in total supply and was ranked 27th with a market capitalization of $3.39 billion.

The reason behind the price uptick?

Over the past week, artificial intelligence cryptocurrency tokens have increased in value in anticipation of Nvidia, the tech giant, releasing its much-awaited second-quarter earnings report.

Over the past week, gains in AI-focused tokens like Near Protocol (NEAR), Artificial Superintelligence Alliance (FET), Bittensor (TAO), and Render (RENDER) have outpaced those in the overall cryptocurrency market.

The native token of Near increased by 25% in the last week, reaching a four-week high of $5.20 on August 25.

The increase in AI-related assets coincides with the markets getting ready for one of the biggest tech company earnings reports of the year. Nvidia is scheduled to release its Q2 results on Wednesday, August 28.

Dan Ives from Wedbush Securities, which also happens to be one of Wall Street's most prominent tech bulls, commented with Fortune on August 23 that these are "the most important tech earnings in years."

He stated that he thinks the need for additional data center capacity—which is required to power the plethora of AI chatbots that have surfaced in recent years—is what is driving the tech bull market. On August 22, Ives also added that “There is one company in the world that is the foundation for the AI Revolution, and that is Nvidia.”

"Nvidia is the zeitgeist stock today," Allspring Global Investments portfolio manager Mike Smith told Reuters, before tying in his comment that "you can think of their earnings four times a year as the Super Bowl."

Revenue at Nvidia increased by 18% between Q3 2023 and Q1 2024, and it has increased by 262% over the previous year.

Over the past 12 months, Nvidia's stock has skyrocketed by 180%, reaching an all-time high of $135 in mid-June. At the end of trading on Friday, its stock was trading at slightly under $130, a 30% recovery from the August market dump. 30% recovery from the August market dump.