AI Cryptos Tumble as Microsoft Pauses Data Center Growth
AI-focused cryptocurrencies are experiencing a downturn.Microsoft’s decision to slow down its data center expansion has sparked this decline. Bittensor (TAO) has lost 10% in the past day and 24% in a week. Render Token (RNDR) and Grass (GRASS) also suffered,dropping 10% and 20%,respectively. The total market value of AI tokens,as tracked by CoinGecko,has fallen by 10% in the last 24 hours.
Microsoft’s move to slow data center growth. This move has sent ripples through the AI crypto market.
Key AI tokens have taken a hit.Bittensor (TAO) has seen a 10% drop in the last 24 hours and a 24% fall in a week. Render Token (RNDR) and Grass (GRASS) have also declined, with RNDR down 10% and GRASS plummeting by 20%. The overall market cap of AI tokens, as monitored by CoinGecko, has decreased by 10% in the past day. The trend mirrors the performance of major AI stocks. NVIDIA, a leader in AI technology, has lost over 30% from its 2024 peak. AMD, another major player, has fallen 47% from its yearly high.
- Bittensor, Render Token, and Grass have all seen notable losses.
- AI stocks like NVIDIA and AMD have also declined.
- The AI crypto market is closely tied to developments in the tech industry.
microsoft’s decision to slow data center expansion in the UK, US, Australia, and Indonesia has raised concerns about AI industry growth. Microsoft, a key player in AI through its partnership with OpenAI, spends over $74 billion annually on data infrastructure. Analysts at TD Cowen have warned of a possible oversupply in data centers.
AI-focused cryptocurrencies like Bittensor provide decentralized marketplaces for AI models. Render on Solana (SOL) allows users to lease GPU power. Grass lets users earn tokens by installing an app. AI meme coins have also suffered,with tokens like GAME losing significant value.
