Fetch.ai leads rally of major AI-related tokens as Nvidia becomes world's most valuable company

Fetch.ai FET +16.74% has spearheaded significant gains made by major AI-related cryptocurrency tokens in the past 24 hours, with the rally coming in the wake of Nvidia becoming the world's most valuable company.

Fetch.ai (FET) saw the largest rise of over 25%, Bittensor (TAO) climbed by over 19%, Render (RNDR) jumped by over 13%, while NEAR Protocol (NEAR) and Internet Computer (ICP) saw gains under 10% each, according to CoinGecko  data .

The artificial intelligence sector is currently the hottest corner in both traditional and crypto markets, according to Nansen.ai analyst Edward Wilson. Wilson highlighted that the rally of AI-related tokens comes after U.S. computer chip manufacturer Nvidia claimed the title of the world's most valuable company, as its share price hit an all-time high of over $136 by close of trade on Tuesday.

"It should come as no surprise that on the back of Nvidia becoming the world's most valuable company that AI tokens like NEAR, RNDR and others are rallying. Both of these tokens are up around 300% in the past year, compared to ether at just over 100% during the same time period, showing high market interest in this sector," Wilson told The Block.

However, YouHodler Risk Manager Sergei Gorev urged caution regarding the latest AI-related rally, suggesting that more clarity is needed as there could currently be more hype to valuations than substance.

"As for the quotes of NVIDIA shares, we consider the stock’s recent dynamics as a result of the market’s overreaction on prospects that are not yet fully clear. The narrative of 'creating something new' has always caused hype in the market, whether it's 3D printers or EVs, etc. And now it’s about the hype around AI," Gorev told The Block.