The AI-powered cryptocurrency sector experienced a significant boost on Thursday, rising 2.3% with the total market cap reaching $29.4 billion. This rally followed NVIDIA’s record-breaking fourth-quarter earnings, which reignited investor enthusiasm for blockchain-based artificial intelligence projects. While Bitcoin dipped to multi-month lows, low-cap AI tokens like KAITO, GRASS, and Berachain (BERA) surged over 20% in 24 hours—demonstrating a clear shift in capital toward emerging AI-driven crypto assets.
NVIDIA reported Q4 revenue of $39.3 billion—an impressive 12% increase from the previous quarter and a staggering 78% year-over-year growth—fueled by soaring demand for AI-optimized hardware. Its GAAP earnings per share hit $4.93 (up 33%), while non-GAAP EPS reached $5.16 (up 28%). The results sent NVIDIA’s stock up 4%, adding $125 billion to its market value in a single session.
This momentum spilled over into the crypto markets, where investors began reallocating funds from traditional digital assets into niche AI blockchain ecosystems. The broader AI crypto sector gained $660 million in market capitalization, signaling renewed confidence in decentralized machine learning applications and infrastructure.
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Why NVIDIA’s Record Earnings Sparked a $660M Surge in AI Crypto
Global financial markets faced turbulence earlier in the week, with geopolitical tensions and macroeconomic concerns triggering a $200 billion outflow from digital assets. However, NVIDIA’s blowout earnings report injected a wave of optimism across tech and innovation-driven sectors—including AI-focused cryptocurrencies.
At the core of this rally is the growing recognition that advancements in AI hardware directly benefit blockchain-based AI platforms. As companies like NVIDIA scale their GPU production for data centers and large language models, decentralized networks that offer distributed computing, data indexing, or AI analytics stand to gain from lower operational costs and increased real-world use cases.
Moreover, improving geopolitical sentiment—particularly renewed diplomatic talks between Russia and the U.S.—has raised hopes for stabilized energy supplies. Should global energy chains normalize, electricity-intensive AI operations could see reduced costs, further boosting profitability for both centralized AI firms and decentralized AI protocols.
This macro backdrop has created fertile ground for speculative capital to flow into high-potential, low-market-cap AI cryptos. Unlike larger, more established projects such as Render (RNDR) or Fetch.ai (FET), these emerging tokens offer higher upside potential during bullish cycles.
Market Shift: Investors Favor Low-Cap AI Tokens Over Established Giants
Data from Coingecko reveals that despite the overall AI crypto sector gaining $660 million, the biggest winners were not the market leaders—but rather newer entrants like KAITO, GRASS, and Berachain.
While major players like ICP and NEAR saw minimal movement, and BitTensor (TAO) and Render (RNDR) even declined slightly, investor focus clearly shifted toward innovative, niche platforms with strong narratives tied to real-world AI utility.
Let’s examine the three standout performers driving this trend.
KAITO: AI-Powered Research Aggregation Gains Traction
KAITO is an AI-driven research aggregation protocol designed to transform how traders and analysts access market intelligence. By leveraging machine learning algorithms, it scans on-chain activity, social sentiment, and financial disclosures to deliver actionable insights through a user-friendly interface.
In the past 24 hours, KAITO’s token surged nearly 40%, fueled by renewed interest in AI-related investments post-NVIDIA earnings. Its relatively low market cap makes it an attractive target for momentum traders seeking outsized returns.
One key catalyst for future growth is KAITO’s planned integration with institutional trading desks. By offering real-time, data-rich analytics, the platform aims to bridge the gap between traditional finance and blockchain-native intelligence tools.
Additionally, upcoming partnerships with well-known research firms are fueling speculation about broader institutional adoption. If KAITO continues delivering intuitive tools backed by powerful AI models, it could capture a significant share of the decentralized research intelligence market.
👉 See how next-gen AI protocols are reshaping data analysis in crypto
GRASS: Decentralizing AI Data and Compute Power
GRASS stands for “Global Resource & AI Sharing System”—a decentralized network that democratizes access to data and computing power for AI development. By connecting users worldwide into a peer-to-peer infrastructure, GRASS enables machine learning engineers to train models without relying on centralized cloud providers like AWS or Google Cloud.
Following NVIDIA’s strong earnings—which underscore continued demand for AI infrastructure—GRASS’s token jumped over 20% in a single day. Its mid-tier market cap and compelling value proposition make it a prime candidate for further gains.
Recent developments include funding initiatives for AI research in autonomous driving and natural language processing (NLP). These collaborations could attract institutional developers looking for cost-effective alternatives to expensive cloud computing.
Small AI startups, in particular, view GRASS as a scalable and affordable solution. If these partnerships yield tangible results, GRASS may evolve into a foundational layer of decentralized AI infrastructure—capable of sustaining price momentum even during broader market downturns.
Berachain (BERA): Merging DeFi Innovation with AI Intelligence
Berachain is a DeFi-centric blockchain leveraging AI to optimize liquidity distribution and cross-chain asset management. Using machine learning algorithms, its protocol identifies yield opportunities across multiple chains, aiming to maximize returns for liquidity providers while minimizing risk.
BERA’s token rose over 20% in 24 hours—moving inversely to Bitcoin’s decline—and drew attention due to its unique fusion of DeFi mechanics with intelligent automation.
The project recently upgraded its mainnet with advanced analytics modules that incorporate real-time volatility data. This enhancement aligns with growing demand for smarter, self-adjusting DeFi protocols capable of navigating complex market conditions.
Strategic alliances with major decentralized exchanges have also boosted visibility. Berachain’s ability to integrate seamlessly across different blockchain ecosystems enhances its appeal, especially as cross-chain interoperability becomes a priority in Web3.
With continued innovation and successful ecosystem expansion, Berachain could attract both retail and institutional liquidity—solidifying its role in the next generation of AI-powered financial protocols.
Summary: A New Wave of AI Crypto Innovation Takes Center Stage
Following NVIDIA’s Q4 earnings release, investor sentiment pivoted sharply toward low-cap AI crypto projects offering novel use cases and high growth potential. KAITO, GRASS, and Berachain led the charge, each gaining over 20% amid declining prices for larger-cap peers.
While established players like ICP (+1.8%) and NEAR remained flat, and TAO and RNDR dipped slightly, the momentum clearly favors emerging innovators. This capital rotation reflects a maturing market where investors are differentiating between hype and genuine technological progress.
Geopolitical de-escalation and sustained demand for AI infrastructure could further support this upward trajectory. As long as NVIDIA and other tech leaders continue driving advancements in AI hardware, decentralized networks that enhance data accessibility, computation efficiency, and intelligent finance will remain in focus.
Frequently Asked Questions (FAQ)
Q: Why did AI crypto tokens rise after NVIDIA’s earnings?
A: NVIDIA’s record revenue reflects strong demand for AI hardware, which boosts confidence in all AI-related technologies—including blockchain-based AI platforms. Investors see these cryptos as leveraged plays on the broader AI boom.
Q: Are low-market-cap AI tokens riskier than large-cap ones?
A: Yes. Low-cap tokens tend to be more volatile and susceptible to manipulation. However, they also offer higher growth potential if the underlying project gains adoption.
Q: What makes KAITO different from other AI analytics platforms?
A: KAITO specializes in aggregating fragmented market data using AI and presents it in an easy-to-use format tailored for traders and analysts—bridging traditional finance with on-chain intelligence.
Q: How does GRASS decentralize AI computing?
A: GRASS connects individuals who share unused internet bandwidth and computing resources, creating a distributed network that AI developers can use instead of expensive centralized cloud services.
Q: Can Berachain sustain its price momentum?
A: Sustained innovation, successful partnerships, and growing liquidity across DeFi platforms will be key. If Berachain delivers on its roadmap, it has strong potential to maintain long-term relevance.
Q: Should I invest in AI cryptos now?
A: Always conduct thorough research and consider your risk tolerance. While the current momentum is positive, crypto markets are highly volatile—especially around speculative sectors like AI tokens.