Yahya 
After Nvidia‘s second-quarter 2024 results, which fell short of market expectations even as they exceeded projections, artificial intelligence-related cryptocurrencies suffered a notable decline. Notable drops in important artificial intelligence tokens followed after the earnings announcement.
CoinMarketCap data shows Artificial Super Intelligence Alliance (FET) lost 7.8% to $1.1663, Bittensor (TAO) dropped 4.5% to $295.22, and Render (RNDR) dropped 6.8% to $5.47. Though this exceeded projections by $1.32 billion, Nvidia’s $30 billion Q2 income indicated a 15% gain from Q1, insufficient to satisfy investors. For Nvidia, better than anticipated is not sufficient. Apparently, investors hope this firm will surpass expectations, said market researcher Lisa Abramowicz. On August 28, Nvidia’s shares ended at $125.61; then, after-hours trading dropped another 6.89% to $116.95.
AI crypto tokens have demonstrated a habit of responding significantly to Nvidia’s performance; several market players forecast the current decline. AI models depend on Nvidia’s processors, hence even if the company’s primary business is still solid, investor expectations seem to have been raised too high.
After “Crypto Black Monday,” on August 5, when Bitcoin dropped below $50,000, the market value of AI and big data crypto ventures surged by 79.7% and then dipped recently. The decline in these tokens after Nvidia’s results points to the strong effect of performance and expectations of important technology companies such as Nvidia on the market.
Experts continue to have a disagreement on the future direction of AI-related cryptocurrencies. While some analysts pointed to the existing situation as wrong signal for investors who looking for buy and hold, others noted that new waves of sell-off in the technology companies are still possible. The direct connection between Nvidia’s performance and AI tokens well echoes the impact of leading tech firms on the cryptocurrency market especially in newer fronts such as AI and big data. Thus, the further experience of using Nvidia’s products in AI will remain the main factor determining the further growth of AI-related cryptocurrencies.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.