Despite strong earnings from tech giants Microsoft and Meta, which underscored their AI-driven growth, major AI-focused cryptocurrency tokens such as TAO, NEAR, ICP, and RENDER posted modest 1-5% gains only.
Microsoft reported a 27% revenue increase to $46.7 billion, with its Azure cloud platform generating over $75 billion annually, according to the company’s quarterly earnings report. This increase in revenue boosted the demand for AI workloads, which has developed datacenter capacity beyond two gigawatts.
Meta’s revenue has increased by 22% year-over-year to $47.5 billion, achieving a 43% operating margin. This growth is fueled by AI-enhanced advertising models that have improved conversions by up to 5% and increased engagement on Facebook and Instagram.
As per the CoinMarketCap, Bittensor (TAO) experienced a slight increase of 1.51% in its price over the last 24 hours. Similarly, NEAR Protocol (NEAR) saw a modest increase of 2.00% within the same period. Internet Computer (ICP) also showed a 3.56% increase in its price over 24 hours. Lastly, Render (RENDER) posted the gain of 4.65% in the same period.
Market Dynamics Shift Away from AI Tokens
The AI token sector faces headwinds from Bitcoin’s growing market dominance, which has redirected investment flows away from altcoins. This shift has caused the sector’s market cap to fall below $5 billion.
Additionally, recent comments from the Federal Reserve Chairman Jerome Powell have added uncertainty in the market, further dampening sentiment. Although monetary policy remained unchanged, Jerome Powell’s remarks on potential tariff-driven inflation pressures weighed on risk assets, including cryptocurrencies.
Investors are now turning their attention to Nvidia’s upcoming earnings report, which is expected in late August 2025, which could potentially revitalize AI token interest if the chip giant reports strong AI-related revenue growth.
Also Read: AI Tokens Crashes After Microsoft Pulls Back Data Centres
