AI Cryptocurrencies Rally Despite Market Slump
25 Jun, 2024 ● Coin news
Cryptocurrencies related to artificial intelligence (AI) experienced a significant increase over the last week, even as Nvidia's market value dropped by $430 billion.
Nvidia, known for its pivotal role in the AI cryptocurrency market and closely watched by crypto traders, saw a decline in its stock price.
According to data from Google Finance, Nvidia's stock fell by 11.08% during the previous five trading sessions.
In contrast, AI-focused cryptocurrencies Fetch.AI (FET) and SingularityNET (AGIX) saw gains of 23.46% and 20.83% respectively over the past week, outperforming the general downturn in the cryptocurrency market during that time, as reported by CoinMarketCap.
Meanwhile, the two largest cryptocurrencies, Bitcoin and Ether, experienced declines of 9.17% and 4.23% respectively over the same seven-day period.
The drop in Nvidia’s share value follows recent concerns about its president, Jensen Huang, and other top executives selling large quantities of their stock holdings.
Since June 13, Huang has sold $79.38 million worth of Nvidia shares, as revealed in a June 21 SEC filing, drawing attention from market analysts.
“Nvidia’s Executives have been selling their shares at the FASTEST PACE EVER,” stated Global Markets Investor in a June 23 X post.
Additionally, other research indicated that the total value of shares sold by Nvidia executives this year is nearing one billion dollars.
“Nvidia insiders have now cashed out for more than $796 million this year,” reported Barchart.
However, portfolio analyst “Oguz O” mentioned that "most of them are pre-planned and don’t bother me," indicating a routine process where executives arrange with brokers to sell shares at predetermined prices.
As of June 24, Nvidia's market capitalization stands at $2.903 trillion, a nearly 13% decrease since reaching its highest value of $3.34 trillion, according to YChart.
AI crypto tokens often move in sync with Nvidia's financial activities, highlighted recently during Nvidia’s earnings announcement for the last quarter of 2023.
On February 21, Nvidia disclosed revenue and earnings for the fourth quarter of 2024 at $22.1 billion and $12.3 billion, respectively, marking increases of 265% and 769% from the fourth quarter of the previous year.
OpenAI CEO Sam Altman’s Worldcoin (WLD) surged by 240% over the month, and Arkham Intelligence’s native token, ARKM, also saw a 211% increase during that period.
Like other AI tokens, Worldcoin and Arkham continued to appreciate last week
At the time of this update, Worldcoin had risen by 9.07% over the last seven days, trading at $0.005, and Arkham was up 16.34%, trading at $1.96.
Sources:
https://cointelegraph.com/news/ai-cryptocurrency-tokens-surge-amid-nvidia-decline
https://www.sec.gov/Archives/edgar/data/1045810/000192109424000836/xsl144X01/primary_doc.xml
https://www.google.com/finance/quote/NVDA:NASDAQ?hl=en
https://x.com/GlobalMktObserv/status/1804861969130041759
https://x.com/thexcapitalist/status/1805179535479943355
https://x.com/Barchart/status/1805112296655487247
https://ycharts.com/companies/NVDA/market_cap
