AI crypto market cap up over 25% amid major developments in the sector

Artificial Intelligence-related cryptocurrencies have seen a significant rise in the past day as several new developments surrounding the AI ​​industry have renewed interest among investors.

NEAR Protocol NEAR Protocol (NEAR), the largest AI coin in terms of market cap, is trading at $5.45 per coin at press time, up 6% in the last 24 hours. Internet Computer Internet Computer (ICP), Render (RENDER), Bittensor (TAO) and FET gained 5.2%, 7.6%, 7.5% and 4% respectively during the same period.

Meanwhile, other AI tokens Livepeer (LPT), Virtuals Protocol (VIRTUAL), AI Rig Complex (ARC) and PAAL AI (PAAL) are at 20.7%, 20.5%, 19.5% and 16.7% respectively. recorded much higher gains. All these AI-related gains have helped the total AI coins market cap increase by 25% to $43.5 billion at the time of this writing.

The AI ​​sector is on the rise after President-elect Donald Trump announced White House advisor appointments who will work with new AI and Crypto Czar David Sacks to centralize AI policy and strengthen the country’s leadership in transformative technologies.

The announcement, made in two Truth Social posts on December 23, included the appointment of Sriram Krishnan as senior policy advisor on Artificial Intelligence, a newly created role within the White House Office of Science and Technology Policy.

Additionally, Michael Kratsios was appointed Director of OSTP, while Lynne Parker was appointed executive director of the Council of Presidential Advisers on Science and Technology, two offices that preceded the Trump administration. Both Kratsios and Parker have previously played key roles in advancing the AI ​​industry in their respective positions.

The appointment of AI experts to key positions in the Trump administration has likely strengthened investors’ confidence in the future of the AI ​​industry. AI-related crypto assets frequently experience rallies in response to positive developments and bullish news in the AI ​​sector.

Another major factor supporting the recent surge in AI tokens is the major funding announcement of xAI, the AI ​​startup founded by billionaire Elon Musk. On Monday, the company announced that it had raised $6 billion in its latest financing round, bringing its total valuation to over $40 billion.

xAI said the newly raised funds, which include participation from chipmaking giants NVIDIA and AMD, will be allocated to building advanced AI infrastructure and boosting the development of its flagship models.

As previously reported by crypto.news, AI tokens previously hit an all-time high on November 28, following AI chip maker Nvidia’s extremely positive quarterly sales report that beat market expectations.