The price of artificial intelligence (AI)-related cryptocurrencies fell briefly though
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 first-quarter revenue jump 18% compared to the fourth quarter of 2023 and a 262% increase from a year ago, beating analyst estimates of $24.6 billion, Cointelegraph reported on Monday. May 23.
The earnings report was released after the New York Stock Exchange (NYSE) market close on May 22. Nvidia shares rose 6.06% in after-hours trading, reaching $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.
Within just five hours of the earnings report being released, Render — an Ethereum-powered platform that enables decentralized GPU rendering — saw a 12% decline, with its price falling to $10.38, according to CoinMarketCap data.
However, a known “whale” wallet sent about $52.1 million to an unknown wallet on May 22, which may indicate that large holders were anticipating a “sell-news” event, according to data from cryptocurrency research firm Santiment.
Meanwhile, a cryptocurrency trader with the pseudonym D0C Crypto noted that RNDR did not see a price rise until two days after Nvidia's latest earnings report.
“During Nvidia's Q4 earnings event in February, RNDR rose 38% in 48 hours. If history repeats itself, it could mean that RNDR pumps over $15 off the current price in 48 hours! They announced in a post on May 22
Related: Nvidia shares rise 15% in 5 days – will AI-powered crypto tokens follow?
Other AI-related tokens, such as The Graph (GRT) – an indexing protocol that optimizes blockchain data queries – fell by approximately 4.77%. Likewise, Fetch.ai (FET) fell 6.42%, while SingularityNet (AGIX) posted a 6.25% decline.
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 capitalization just reached $2.5 trillion, which is larger than the entire cryptocurrency space, and you are not optimistic about AI in this cycle?” Cryptocurrency trader Bishara, who goes by a pseudonym, asked his 18,000 X followers on May 22.
“Nvidia did well = stocks will do well = cryptocurrencies will do well,” added a cryptocurrency trader who goes by the pseudonym Plazma.
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This article does not contain investment advice or recommendations. Every investment and trading move involves risks, and readers should conduct their own research when making a decision.
