AI tokens rally as NVIDIA slumps 13% from market cap peak
|Artificial intelligence (AI)-related cryptocurrencies surged over the past week, even as Nvidia’s stock lost $430 billion in market capitalization. Nvidia, a company closely monitored by crypto traders, is often seen as an indicator of the AI cryptocurrency market.
Nvidia, which produces computer chips that many AI companies use to run their AI models, saw its stock price decline 11.08% over the past five trading days, according to Google Finance data.
On the other hand, Fetch.AI (FET) and SingularityNET (AGIX) are up 23.46% and 20.83% over the past seven days, contrasting a decline in the broader crypto market over the same period, according to CoinMarketCap data.
The two largest cryptocurrencies by market cap, Bitcoin (BTC $61,095) and Ether (ETH $3,368) are down 9.17% and 4.23% over the seven days.
Nvidia’s stock decline came amid concerns over its president, Jensen Huang, along with other executives, selling off a significant amount of shares in recent times.
The stock price of Nvidia is down 11.16% over the past five trading days. Source: Google Finance
Since June 13, Huang has liquidated $79.38 million worth of Nvidia stock, according to a June 21 filing with the United States Securities and Exchange Commission (SEC), attracting attention from trading research firms.
“Nvidia’s Executives have been selling their shares at the FASTEST PACE EVER,” trading resource account Global Markets Investor said in a June 23 X post, while another research firm reports the total value of shares sold by Nvidia executives across the year is now approaching the billion-dollar mark.
“Nvidia insiders have now cashed out for more than $796 million this year,” Barchart added, but portfolio analyst “Oguz O” countered that “most of them are pre-planned and don’t bother me,” a common practice when an executive enters a contract with a brokerage firm to sell stock at certain prices.
Source: Barchart
As of June 24, Nvidia’s market cap is $2.903 trillion, down almost 13% over the past five trading days since it hit its all-time high of $3.34 trillion, according to YChart data.
Related: Nvidia launches in Middle East amid US AI export clampdown: Report
AI crypto tokens and Nvidia have had several instances of parallel movement, most recently noticeable when Nvidia released its earnings report for the final quarter of 2023.
On Feb. 21, Nvidia announced revenue and earnings of $22.1 billion and $12.3 billion, respectively, in Q4 2024, representing increases of 265% and 769% compared with Q4 2023.
OpenAI CEO Sam Altman’s Worldcoin (WLD) had a gain of 240% over the month, while blockchain AI analytics firm Arkham Intelligence’s native token, ARKM, gained 211% during the same period.
Like other AI tokens, these tokens also increased in value last week. At the time of publication, Worldcoin is up 9.07% over the past seven days, trading at $0.005, while Arkham is up 16.34%, trading at $1.96 over the same period.
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