The price of cryptocurrencies linked to artificial intelligence (AI), however, briefly fell
The price of artificial intelligence (AI)-related cryptocurrencies briefly fell despite Nvidia’s impressive first-quarter earnings report, contrary to cryptocurrency traders’ expectations.
Nvidia – which produces chips used to train and deploy AI models – saw its first quarter revenue jump 18% from the fourth quarter of 2023 and 262% from last year, beating industry estimates. analysts of $24.6 billion, Cointelegraph reported Monday. May 23.
The earnings report was released after the New York Stock Exchange (NYSE) closed on May 22. Nvidia shares rose 6.06% after hours, hitting $1,007 at the time of writing, according to data from Yahoo Finance.
Some AI token traders appeared disappointed that the positive results did not lead to a similar rise in AI token prices.
Just five hours after the earnings report was released, Render – an Ethereum-powered platform that enables decentralized GPU rendering – saw a 12% drop, with its price falling to $10.38, according to data from CoinMarketCap.
However, a known “whale” wallet sent approximately $52.1 million to an unknown wallet on May 22, which may indicate that large holders were expecting a “news sell” event, data shows from cryptocurrency research firm Santiment.
Meanwhile, a cryptocurrency trader under the pseudonym D0C Crypto noted that RNDR only saw a price increase two days after Nvidia’s last earnings report.
“When Nvidia released its fourth quarter results in February, RNDR increased 38% in 48 hours. If history repeats itself, this could mean that RNDR will shave over $15 off the current price in 48 hours! They announced it in a post on May 22
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Other AI-related tokens, such as The Graph (GRT) – an indexing protocol that optimizes blockchain data queries – fell around 4.77%. Likewise, Fetch.ai (FET) fell by 6.42%, while SingularityNet (AGIX) posted a decline of 6.25%.
However, traders remain confident that Nvidia’s results will eventually trickle down to the broader cryptocurrency market and have a positive impact.
“Nvidia’s market cap just hit $2.5 trillion, which is bigger than the entire cryptocurrency space, and you’re not optimistic about AI in this cycle? Cryptocurrency trader Bishara, who goes by a pseudonym, asked his 18,000 followers
“Nvidia did well = stocks will do well = cryptocurrencies will do well,” added a cryptocurrency trader under the pseudonym Plazma.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research before making a decision.
