Akash Network (AKT) Price Moves Up 20%, Boosting Investor Confidence

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As an analyst with a background in both technology and finance, I find the growth trajectory of Akash Network (AKT) particularly intriguing. Having worked extensively with smaller companies struggling to access high-performance computing resources, I can empathize with their plight and appreciate the value that Akash brings to the table.

The price of Akash Network’s token (AKT) increased again due to growing investor attention in the field of decentralized cloud computing. As reported by CoinGecko, the token has risen by 20% since last week, reflecting a decrease in market fear, uncertainty, and doubt.

As a crypto investor, I’m excited about the gradual expansion of the platform, as it integrates new features on Akash. This development promises benefits for both investors and users of Akash services. With the current bullish sentiment in the market, it appears that AKT is poised for significant long-term growth.

Network Utility Reaches Almost Half As Renters Double

On August 10th, it was disclosed that the utilization rate for the platform’s GPUs surpassed 43%, due to a rise in Akash GPU renters. In an interview on Bare Metal Podcast, Akash Founder Greg Osuri shared that the typical users of their network are typically smaller companies who lack access to substantial computing power.

The current utility rate at Akashnet is 43%, suggesting a consistent service. It seems that those renting from them are affiliated with companies that require non-crypto specific GPU computing, as @gregosuri hints. AKT ensures access to these types of resources in its market.
— Akash Alpha (@akashalpha_) August 9, 2024

As an analyst, I’ve noticed a significant challenge faced by numerous companies: the struggle to secure on-demand access for A100 GPUs. Unless you’re fortunate enough to have a bank balance of over $100 million or are backed by tech giants like Amazon, Google, or Microsoft, obtaining high-density computing power seems almost unattainable, as stated by Osuri.

One high-end GPU from NVIDIA, the A100, is designed primarily for machine learning tasks within data centers. Priced at $10,000, it might be challenging for smaller, less well-funded companies to acquire this crucial hardware for their data needs. As per Osuri, the standout feature of Akash is its open availability.

Akash Network (AKT) Price Moves Up 20%, Boosting Investor Confidence

Today, obtaining GPUs as a company is virtually unattainable, according to Osuri, who emphasized the challenges businesses encounter when attempting to acquire high-end models such as the A100 GPUs necessary for data-intensive tasks.

In essence, Akash has managed to offer high-performance computing resources to smaller businesses at competitive prices. A glance at their website shows that hourly rental fees for A100 are as low as $2.08, with the minimum being $0.75. This pricing strategy gives them an advantage over competitors in the same market, as it allows small companies to maximize their investment in computing power.

Akash Network (AKT) Price Moves Up 20%, Boosting Investor Confidence

Can This Growth Boost Akash Network More?

As AKT‘s network utility expands, it is facing significant pressure to increase prices, attracting attention. Given the token’s present standing, there’s a possibility that it could rebound to around $3 over time, considering increased usage by consumers on the platform.

However, AKT’s correlation with the broader market might hurt the token in the long term. However, the market is continuing its gradual upward movement, giving investors and traders confidence in the long-term performance of the token. 

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2024-08-12 01:16