The fact that the technology is quickly entering the mainstream with products like OpenAI’s ChatGPT has helped the growth of AI crypto such as Render (RNDR) or Fetch.ai (FET) in 2023. After chipmaker Nvidia (NVDA) disclosed its upbeat prognosis for AI sales in late May, several AI tokens experienced a brief uptick.
In late May, Nvidia briefly surpassed the $1 trillion mark in market value, thanks to the competition among large and small tech businesses to include generative AI capabilities into their offerings. Recent Google I/O and Microsoft Build conferences focused heavily on AI tools, and Nvidia is a crucial provider for businesses looking to develop AI-based products thanks to its CPUs.
Nvidia’s most recent quarterly financial report showed a more than $2 billion profit in just three months. This latest push comes after Nvidia’s revenue grew during a GPU scarcity early in the epidemic while they were in demand for PC gaming and cryptocurrency mining, until those industries declined throughout 2022.
Nvidia’s CEO, Jensen Huang, claimed last August that the company had to sell gaming GPUs for less money because it had created too many of them. The picture was more encouraging by the time Nvidia released its subsequent report in February when ChatGPT was all over the press, Huang had emphasized the potential for the company’s data center expansion, and the most recent report had revealed a new high for data center revenue.
GPUs are chips that companies like OpenAI utilize to create cutting-edge AI applications like ChatGPT.
The Nvidia Computex 2023 keynote this year was jam-packed with AI announcements, including a demonstration of games that support natural language for input and responses using the company’s Avatar Cloud Engine (ACE for Games) and a new DGX GH200 supercomputer built around its newest Grace Hopper Superchip, which can perform AI operations at a rate of one exaflop.
Since the COVID-19 pandemic, there has been a persistent issue with the GPU scarcity. Additionally, as the need for AI technology grew, the scarcity worsened.
Investors and businesses, therefore, began looking for alternatives to the current system, such as “Decentralized Rendering Technology.”
Timothy Arcuri, an analyst at UBS Investment Bank , claims that training ChatGPT3 alone required over 10,000 Nvidia GPUs and that additional semiconductor technology may be needed for Chatbots in the future.
Investors start looking for alternative assets to make up for the GPU crisis as the demand and price for AI technology soar.
Investor Ericzoo.eth also expressed optimism toward the Render Network project.
Render Network aims to offer more affordable, accessible technologies that could potentially change AI computing while easing pressure on the semiconductor industry, which Nvidia is a huge part of.
Furthermore, this method of computing is built on blockchain and cloud-based technology, which can handle difficult AI processing. It may be less reliant on hardware GPUs and makes better use of those devices. By nature, it encourages engagement as well.
Processing rendering tasks quickly and effectively is made possible by the network’s ability to split the effort among several GPUs. The individuals who “lend” their GPUs are known as node operators.
Additionally, the RNDR token strategy enables lone producers to mine RNDR tokens when their combined GPU is idle.
Furthermore, the tokens acquired can be used to pay for a variety of rendering services, which in turn promote its micro-economy where services are paid with RNDR only.
RNDR can also be used as a medium of trade for Nvidia. Additionally, the acquired tokens can be used to pay for a variety of rendering services, which in turn helps to support the micro-economy in which RNDR is the sole form of payment accepted. In addition, RNDR can be used as a medium of trade.
Render (RNDR), an AI crypto token, has a stronger correlation with Nvidia shares than the overall crypto market. Still, it’s the fact that the recent legal actions by the US Securities and Exchange Commission (SEC) against Coinbase and Binance have caused a gap in this relationship. Concerns about regulation and enforcement in the crypto sector have obviously already reached the AI field.
The list of 19 coins , which was revealed in SEC complaints filed last week against cryptocurrency exchanges Binance and Coinbase Global Inc., was seen as being so potentially harmful that it sparked a strong selloff. These tokens included a few metaverse tokens like MANA, LAND, AXS, and FLOW. Since right before the SEC filed a complaint against Binance on June 5, the market value of all 19 coins has fallen by nearly $23 billion. Three of the coins were taken off of Robinhood Markets Inc.’s cryptocurrency trading platform, and eToro ceased allowing US customers to create positions in several of them.
According to MarketWatch statistics , on Wednesday, June 14, shares of Nvidia Corp. rose 4.81% to $429.97. The stock had gained for five days running at this point. Shares surpassed their previous peak of $419.38, which the business attained on May 30th, to reach a new 52-week high. The trading volume (72.8 M) exceeded the 46.8 M 50-day average volume.
As per AI tokens, SingularityNET (AGIX) fell by 8.31% , according to CoinMarketCap, to 19 cents. Cortex (CTXC) went down by 3.97% to 14 cents and Measurable Data Token (MDT) added 5.34% to reach 0.34 cents a coin. All these tokens have a market cap of less than $40 million.
Fetch.ai (FET), with a market cap of $195 million, dropped 4.77% to trade at 0.18 cents.
Just for comparison, RNDR price was down by 8.03% to $1.77 at the time of writing.
The highly anticipated A3 GPU supercomputer, a cutting-edge innovation that will change the landscape of machine learning and digital content creation, was unveiled by Google Cloud in May. This next-generation supercomputer promises unmatched improvements in AI and rendering workflows because to its cutting-edge Nvidia H100 GPU capabilities and easy integration with RNDR (Render Token).
Also, Apple suggested a product connected to the Render network (RNDR), which enables distributed GPU rendering on the blockchain, during the introduction of its Apple Vision Pro.
The creator of the iPhone then brought up Octane X, a GPU rendering feature accessible through the Mac App Store. Due to the fact that OTOY is the company behind both products, Octane is connected to the Render (RNDR) token.
Despite the present degradation, projects still have time to create use cases, so not all is lost. Nvidia might pick RNDR just because it has been proven to be a good ‘colleague’ it the past integrations such is the one within the Google Cloud.
Although sluggish development based on real utility rather than enthusiasm is more likely, projects with real value will nevertheless eventually rise to the top despite the fact that the hype has subsided. is.
However, barring a significant advancement in AI technology that would spark another brief surge, AI-related coins may continue to face difficulties for the foreseeable future.