TAO, NEAR, RENDER leads the rally as AI chips rise

• AI tokens TAO, NEAR and RENDER have seen gains of over 10% in the last 24 hours.
• TAO is leading the rally among AI tokens as the network prepares to launch Ethereum-compatible smart contracts.
• Members of the crypto community show mixed reactions as Kamala Harris finally talks about digital assets.

Artificial intelligence (AI) tokens led by TAO, NEAR and RENDER posted double-digit gains on Monday. Analytics platform Token Unlocks suggested that tokens such as FET and RENDER, which have high circulation and low FDV, are less likely to experience speculative volatility.

AI tokens start the new week with double digit gains

The crypto AI sector has seen impressive gains over the past 24 hours as major tokens in the category surged, including Bittensor (TAO), Near Protocol (NEAR), Render (RENDER) and The Graph (GRT) on Coingecko data.

Bittensor (TAO) is among the biggest gainers of the day, up 16% in the last 24 hours. The token has remained in the green for the past 2 weeks, pushing its weekly gains to 88%.

The TAO price hike comes as the network prepares to launch Ethereum-compatible smart contracts, which will help fuel bridges and subnet projects seamlessly. The buzz surrounding this new upgrade has attracted the attention of both retail and institutional investors to the Bittensor network.

Other notable AI tokens experiencing growth include RENDER, Internet Computer (ICP), and The Graph (GRT), which have seen gains of over 10%, 4%, and 8%, respectively, over the past 24 hours.

Artificial Intelligence Tokens

The Artificial Superintelligence Alliance (FET) is also active, as its community is currently in a voting process that could see CUDOS join Fetch.ai, SingularityNet, and Ocean Protocol. However, the token may see a pullback in its price movement as it prepares for an unlock event later in the week.

NEAR is also up over 12%, riding out the X account hack earlier in the month.

Meanwhile, Token Unlocks suggests that certain AI tokens exhibit interesting market dynamics due to variations in their float and fully diluted valuation (FDV).

“These variations in float and FDV can significantly influence price movements and investor sentiment,” Token Unlocks wrote in an X post.

Tokens like TAO, with only 35.5% of its supply in circulation and high FDV, may be subject to increased volatility. However, tokens like FET and RENDER, with high circulation and low FDV, may see less pronounced volatility compared to the previous category.

Additionally, the rise in AI tokens may have stemmed from Democratic candidate Kamala Harris’ recent announcement to encourage investment in AI and digital assets. Harris’ long-awaited response to her stance on crypto has led to mixed feelings among members of the crypto community.