The cryptocurrency market witnessed a familiar phenomenon on Thursday as an announcement from Elon Musk sent a specific sector surging. The unveiling of Grok4, the latest iteration of his xAI firm’s chatbot, has injected over $220 million into the market capitalization of artificial intelligence-related crypto tokens within the last 24 hours.
The rally pushed the total market cap for the AI token category to over $26,05 billion, with daily trading volumes topping $3,12 billion, according to data from CoinGecko. This immediate and potent market reaction underscores the significant influence Musk continues to wield in the digital asset space, where sentiment can shift dramatically based on developments from major tech players.
During a livestream on his social media platform, X, Musk introduced Grok4 and a multi-agent version, Grok4 Heavy. He made bold claims, touting Grok4 as the “smartest AI in the world” and predicting it could be capable of discovering new physics as early as next year. These new models, bundled with “SuperGrok” tiers, are designed to serve as powerful research and productivity assistants.
The Ripple Effect Across AI Tokens
The enthusiasm quickly spread to leading AI-focused cryptocurrencies. A basket of prominent tokens saw significant gains, highlighting investor appetite for projects at the intersection of AI and blockchain. The sustainability of such a rally remains a key question, but the short-term impact is undeniable.
| Token | Ticker | 24-Hour Gain Range |
| Bittensor | TAO | 4% – 7% |
| Near Protocol | NEAR | 4% – 7% |
| Internet Computer | ICP | 4% – 7% |
| Artificial Superintelligence | FET | 4% – 7% |
| Render | RENDER | 4% – 7% |
This event is characteristic of the 2025 market cycle, where narratives tied to technological breakthroughs, particularly in AI, have repeatedly acted as powerful catalysts for crypto rallies. While the market digests the news, the central question for investors is whether this surge is a durable revaluation of AI projects or a fleeting spike driven by the hype surrounding one of tech’s most prominent figures. For now, the “Musk Effect” is in full force, reaffirming the volatile yet compelling link between technological innovation and crypto market dynamics.
