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AI Tokens Rise Despite Nvidia’s $430 Billion Market Cap Loss
Nvidia shares have suffered a sharp decline over the past three consecutive trading days, resulting in a loss of more than $430 billion in market capitalization and a 13% decline from its peak.
Despite this decline, popular AI crypto tokens have shown significant increases over the past 24 hours.
AI tokens rally as NVDA dives
Crypto traders are closely watching 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 has not manifested itself in the latest valuation.
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 second-steepest decline of the year for the chipmaker, with its shares falling 6.7%. Despite this recent decline, Nvidia has nearly tripled in value over the past year. Just last week passed Apple and Microsoft will become the most valuable US company. However, data by Ycharts shows that Nvidia’s market capitalization fell by $430 billion from $3.3 trillion to $2.9 trillion, abandoning its top position.
Even though AI leader Nvidia has seen a notable drop in its stock prices, AI crypto tokens have shown constant increases in the last few hours. The artificial intelligence (AI) market capitalization is currently slightly above $29 billion, reflecting a change of 8.7% over the past 24 hours.
Major players such as Near Protocol, Fetch.ai, Internet Computer, Render and The Graph have seen significant gains ranging from 3% to 25%.
Over the same period, the biggest gainers were Nosana and Commune AI, with increases of 37% and 35% respectively, despite their low-to-mid market capitalizations.
No bad news
While Nvidia’s stock plunge did not coincide with significant negative news or catalysts, concerns have arisen over the recent sale by Chairman Jensen Huang and other executives of a significant amount of stock.
Since June 13, Huang has liquidated $79.38 million worth of Nvidia shares reported in a June 21 filing with the SEC, attracting considerable attention.
Global market expert highlighted in a recent post that Nvidia executives are selling stock at the fastest pace ever. Additionally, Barchart reported that Nvidia executives collectively sold shares totaling $796 million during the year.
However, analysts such as Oguz O countered that “most of them are already planned and don’t bother me”, suggesting that the sales were early and not alarming.