As the ongoing bull run of Bitcoin continues to drive momentum in the cryptocurrency market, artificial intelligence (AI) and big data tokens have seen their market capitalization soar by a staggering 131.4% since hitting their lowest point of the year on June 8.
Market Capitalization Breaks $42 Billion
On November 19, the total market capitalization of AI and big data crypto projects and tokens grew to an impressive $42.1 billion, led by Near Protocol (NEAR), Internet Computer (ICP), and Render (RENDER), according to data from Cointelegraph Markets Pro and CoinMarketCap.
| Token | Market Capitalization |
| — | — |
| Near Protocol (NEAR) | $5.3 billion |
| Internet Computer (ICP) | $2.1 billion |
| Render (RENDER) | $1.8 billion |
[Image description: Market capitalization and volume of AI and big data tokens, 30 days. Source: CoinMarketCap]
Why the Surge in AI Token Prices?
The recent surge in AI token prices can be attributed to several factors, including:
- Overall positive investor sentiment: The increasing confidence in Bitcoin’s price has spilled over into other areas of the cryptocurrency market.
- Growing confidence in Bitcoin (BTC): As Bitcoin continues its bull run, investors are becoming more confident in the overall direction of the market.
- Regulatory clarity: Numerous jurisdictions have provided regulatory clarity for cryptocurrencies, reducing uncertainty and increasing investor confidence.
- No major ecosystem collapses: The absence of any major ecosystem collapses has contributed to a sense of stability in the market.
A Year of Ups and Downs
In contrast to the current trend, the AI token market had a phase of steady decline in the first half of 2024. The market, which had a peak capitalization of $45 billion on March 15, eventually made its way down to $18.2 billion by June 8.
| Token | Market Capitalization (March 15) | Market Capitalization (June 8) |
| — | — | — |
| Near Protocol (NEAR) | $6.5 billion | $3.4 billion |
| Internet Computer (ICP) | $2.9 billion | $1.7 billion |
| Render (RENDER) | $2.5 billion | $1.4 billion |
[Image description: Market capitalization and volume of AI and big data tokens, one year. Source: CoinMarketCap]
Recovery and Growth
However, in the next six months, the AI token market made a U-turn recovery to regain a market capitalization of $42.1 billion. The AI industry is well-positioned to break its record of almost $45 billion to mark a new all-time high by the end of November.
AI Tokens with Over $1 Million in Market Cap
In addition to the projects mentioned above, other AI tokens with over $1 million in market capitalization include:
- Bittensor (TAO)
- Artificial Superintelligence Alliance (FET)
- Injective (INJ)
- The Graph (GRT)
- Theta Network (THETA)
- Akash Network (AKT)
Crypto Markets Comparable to Traditional Banking Giants
The cumulative market capitalization of the entire crypto market is currently estimated at $3.09 trillion, according to CoinMarketCap data. As a result, AI tokens represent just 1.36% of the crypto market — signaling a huge scope for growth.
| Token | Market Capitalization |
| — | — |
| Bitcoin (BTC) | $1.46 trillion |
| Ethereum (ETH) | $383 billion |
| Near Protocol (NEAR) | $5.3 billion |
[Image description: Chart showing Bank of America’s market capitalization currently sits at $346 billion. Source: CompaniesMarketcap]
Increasing Acceptance of Decentralized Finance and Crypto Assets
The shift signals the increasing acceptance of decentralized finance and crypto assets.
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