South Korean Cryptocurrency Enthusiasts Chase Risk with AI-Focused Tokens, Spurred by Nvidia’s Popularity – Reported by Benzinga

Benzinga – An increasing number of South Korean investors are turning their attention to cryptocurrencies connected with artificial intelligence (AI), leading to a noticeable jump in the nation’s contribution to worldwide trading volumes of Nvidia Corp.’s AI-centered tokens. Specifically, these volumes have escalated to 18.7% in May, up from a scant 0.6% in the middle of 2023.

Developments: These AI-focused tokens, often launched by nascent initiatives, are designed to leverage blockchain technology to offer AI services, Bloomberg reported on a recent Friday.

The intertwining of AI and blockchain technology has not yet demonstrated its effectiveness, but South Korean traders are increasingly drawn to the novel fusion of AI and digital currencies.

With around 10% of South Koreans engaged in the cryptocurrency market, the nation’s trading activity predominately involves less stable, smaller-cap coins over the better-known cryptocurrencies such as Bitcoin (CRYPTO: BTC) and Ethereum (CRYPTO: ETH).

Significantly, Nvidia and Microsoft Corp., both influential in the AI domain—with the former crucial for AI computation and the latter actively supporting OpenAI and its product ChatGPT—rank as the second and third most favored foreign equities among South Korean investors this year, as per data from Korea Securities Depository.

In terms of trade volumes, AI-focused tokens have, on average, seen $8 billion in weekly transactions since February, dwarfing the previous low of $300 million recorded in mid-2023.

Questions arise, though, regarding the longevity of the buzz surrounding AI-integrated cryptocurrency endeavors, considering the propensity for extreme volatility and the boom-and-bust patterns witnessed with digital assets associated with trending memes or movements.

Relevance:: Long a key actor in the worldwide cryptocurrency theater, South Korea reported over $98 billion worth of declared foreign digital assets by September 2023—a testament to its moniker as a “crypto nation.”

The swell in appetite for AI-twinged crypto ventures comes as no shock given South Korea’s robust technological infrastructure and a well-established cryptocurrency culture, as well as global anticipation for AI and its prospective broad impacts, inspiring investors to delve into AI-centric possibilities within the cryptosphere.

Despite a drop in AI-oriented cryptocurrency tokens following a report of Nvidia Corp. surpassing earnings expectations for Q1, Render—a token known for strong affiliations with the tech heavyweight—saw its value dip by 3.79% after a prior rise preceding the earnings disclosure.

Read On: The ‘Dogecoin Killer’ Shiba Inu sees a 5% upswing as an analyst predicts an incoming ‘SHIB Season’ backed by compelling market data.

Notice: Content assistance provided in part by Benzinga Neuro and was vetted and published by the editors at Benzinga.

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