Despite Nvidia’s sharp decline, AI crypto tokens are surging double digits, indicating resilience in the market.
Nvidia’s stock has experienced a sharp decline over the past three consecutive trading days, resulting in a loss of over $430 billion in market capitalization and a 13% drop from its peak.
Despite this downturn, popular AI crypto tokens have shown significant surges in the last 24 hours.
AI Tokens Rally as NVDA Plunges
Crypto traders closely monitor Nvidia as a key indicator for the AI cryptocurrency market. While there have been instances of parallel movement, such as during Nvidia’s Q4 2023 earnings report, this correlation did not manifest in the latest assessment.
Over the past five trading days, Nvidia’s stock price has declined by 11.16%, currently trading at $118.11, according to Google Finance data.
Monday marked the chipmaker’s second steepest drop this year, with its stock falling 6.7%. Despite this recent decline, Nvidia’s value has nearly tripled over the past year. Just last week, it surpassed Apple and Microsoft to become the most valuable U.S. company. However, data from Ycharts shows Nvidia’s market cap has decreased by $430 billion, falling from $3.3 trillion to $2.9 trillion, relinquishing its top position.
Despite Nvidia, a leader in Artificial Intelligence Computing, experiencing a notable decline in its stock prices, crypto AI tokens have shown steady increases over the past hours. The Artificial Intelligence (AI) market cap is currently slightly over $29 billion, reflecting an 8.7% change in the last 24 hours.
Top players such as Near Protocol, Fetch.ai, Internet Computer, Render, and The Graph have recorded significant gains ranging from 3% to 25%.
During the same period, the largest gainers included Nosana and Commune AI, with increases of 37% and 35%, respectively, despite their mid-to-low market capitalizations.
No Negative News
Although Nvidia’s stock fall did not coincide with any significant negative news or catalysts, concerns arose over President Jensen Huang and other executives selling a substantial amount of shares recently.
Since June 13, Huang has liquidated $79.38 million worth of Nvidia stock, as reported in a June 21 filing with the SEC, drawing significant attention.
Global Market Insider highlighted in a recent post that Nvidia executives are selling shares at their fastest pace ever. Additionally, Barchart reported that Nvidia executives have collectively sold shares totaling $796 million throughout the year.
However, analysts like Oguz O countered that “most of them are pre-planned and don’t bother me,” suggesting the sales were anticipated and not alarming.