AI-focused cryptocurrencies have seen a significant increase in value in the past week, despite Nvidia’s stock plummeting by $430 billion in market capitalization. Nvidia, which is closely monitored by cryptocurrency traders, is often considered a barometer for the AI cryptocurrency market.
The company, known for producing computer chips used by many AI companies to power their AI models, experienced an 11.08% decline in its stock price over the last five trading days, as per data from Google Finance.
Conversely, Fetch.AI (FET) and SingularityNET (AGIX) have seen a surge of 23.46% and 20.83% respectively in the past seven days, in contrast to the broader crypto market’s decline over the same period, according to CoinMarketCap data. The two largest cryptocurrencies by market cap, Bitcoin (BTC) and Ether (ETH), have experienced a 9.17% and 4.23% decrease over the seven days.
Nvidia’s stock decline has raised concerns due to its president, Jensen Huang, and other executives selling off a significant number 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 United States Securities and Exchange Commission (SEC), attracting the attention of trading research firms.
Nvidia’s market cap currently stands at $2.903 trillion, down almost 13% from its all-time high of $3.34 trillion over the past five trading days, as per YChart data.
AI-related cryptocurrencies have shown a pattern of movement similar to Nvidia, particularly noticeable when Nvidia released its earnings report for the final quarter of 2023. For instance, on Feb. 21, Nvidia revealed revenue and earnings of $22.1 billion and $12.3 billion, respectively, in Q4 2024, marking significant increases compared to Q4 2023. This has had a ripple effect on tokens such as Worldcoin (WLD) and Arkham Intelligence’s native token, ARKM, which saw gains of 240% and 211% respectively over the same period.
It’s important to note that this article does not provide investment advice or recommendations. Every investment and trading decision involves risk, and readers are encouraged to conduct their own research before making any financial decisions.