AKT Rally: What's Behind Akash Network's Sudden Rise?

Written by

Eddie Mitchell

Cryptocurrency Writer

The Akash Network (AKT) token has been making major gains in both price, market cap, and network activity, reaching new highs across the board today, 24 January 2024. So what's behind the sudden price rise? 

AKT in bloom

In the last year, the price of AKT has risen by almost 900% from $0.28 in Early February 2023 to $2.73 at the time of writing. This has also coincided with a huge increase in its market cap, which now sits at over $600million, up from $31m this time last year.

Akash Network daily chart

Its success isn’t just another random movement in crypto, seemingly Akash has been exceptionally busy with many notable developments and upgrades that have not only drawn in new investors but also network participants of all shapes and sizes, which could reflect a positive long-term sentiment for AKT throughout 2024.  

What is Akash?

Akash Network is a decentralized cloud computing platform built on the Cosmos blockchain, it considers itself a “supercloud” provider with a cheap, flexible, and powerful infrastructure that allows users to deploy any cloud-native application.

At its most rudimentary, Akash is a platform where users can buy and sell cloud computing freely. Users can rent out their extra computing resources to clothes and earn rewards in the platform's native crypto AKT, while those in need can quickly find an affordable reliable source.

With Akash, AI developers, 3D artists, healthcare professionals, and a myriad of other sectors and industries can access thousands of dollars worth of powerful CPU and GPU hardware power for a fraction of the price.

Akash scores big

2023 was a particularly big year for Akash, especially with the stablecoin USD Coin (USDC) being introduced into the network’s settlement systems, parent company Overclock Labs purchasing the Cloudmos platform and making its code open source, and the launch of its open-source AI chatbot, Akash Chat.

At the end of August, Akash announced that its Supercloud can now support NVIDIA GPUs for the first time with AI technologies as a focus of this upgrade. Following these developments, network activity began to increase massively resulting in record levels of CPU capacity briefly peaking at just over 10,000 on 22 January 2024.

Cloudmos

As per all the metrics available from Cloudmos, both supply and demand are up across the board for Akash Network. Since August 2023, the total number of leased resources such as GPU, CPU, memory, and storage have all risen dramatically as has the network’s capacity.

Total resources leased

2024 is set to be an interesting year for Akash as they set their sights on improving their GPU capacities to provide fair pricing for the booming AI sector.