The value of cryptocurrency tokens related to artificial intelligence (AI) experienced a brief decline despite Nvidia’s impressive earnings report for the first quarter. Nvidia, a company that produces chips used for AI training and deployment, saw an 18% increase in revenue from the previous quarter and a 262% surge from the previous year, surpassing analyst predictions of $24.6 billion. The report was released after the New York Stock Exchange closed on May 22, causing Nvidia’s stock to spike by 6.06% in after-hours trading. However, some traders in AI tokens were disappointed as they expected a similar increase in the prices of these tokens.
Within just five hours of the earnings report being released, Render, an Ethereum-based platform for decentralized graphics processing unit rendering, experienced a 12% decline, with its price dropping to $10.38. This decline may have been influenced by a large transaction of $52.1 million from a known “whale” wallet to an unknown wallet on May 22, which could indicate that significant holders were anticipating a “sell the news” event.
Despite these developments, there is optimism among traders that Nvidia’s positive results will eventually have a positive impact on the broader crypto market. Other AI-related tokens, such as The Graph (GRT), Fetch.ai (FET), and SingularityNet (AGIX), also experienced declines in their prices. However, traders remain confident that Nvidia’s success will benefit the wider crypto market.
It is worth noting that this article does not provide investment advice or recommendations. Readers should conduct their own research and exercise caution when making investment decisions.