- Nvidia wiped out $220 billion in market cap on Friday, the chipmaker dropped to third most valuable firm behind Microsoft and Apple.
- The correction in the tech giant’s stock was followed by AI tokens extending their losses, NEAR, FET, RNDR, GRT, TAO were hit.
- Fetch.ai, Render, The Graph holders realized losses during the recent correction in AI tokens.
Chipmaking Artificial Intelligence (AI) giant Nvidia took a hit on its valuation on Friday. The tech firm was dethroned by Microsoft and Apple as it wiped out nearly $220 billion in market capitalization.
Nvidia’s decline coincides with AI tokens extending their losses on Friday and Saturday, June 22. The seven-day return on most AI tokens is negative, per CoinGecko data.
Developments in AI and tech giants have directly impacted AI token prices in the past several weeks.
AI tokens extend losses: NEAR, FET, RNDR, GRT, TAO
AI tokens NEAR Protocol (NEAR), Fetch.ai (FET), Render (RNDR), The Graph (GRT) and Bittensor (TAO) extended their losses in the past 24 hours. The prices of the AI tokens dipped in the past seven days, amidst a market-wide correction in Bitcoin and altcoins.
The market capitalization of the sector declined 1.7%, down to $28.295 billion, as seen on CoinGecko.
AI token prices in the past 24 hours and 7 days on CoinGecko
The drop in chipmaker Nvidia’s market capitalization is likely the market mover that influenced AI tokens. Other developments include the upcoming merger of the Fetch.ai, Ocean Protocol and SingularityNET, into ASI token (on July 15).
News of technology giant Apple’s decision to hold off AI tech in the European Union countries, citing regulatory concerns, is another notable development.
Is the AI narrative dethroned?
Crypto influencer behind the X handle @CredibleCrypto notes that the narrative of the “AI supercycle” could end soon. While the narrative is strong, their consistent profit taking can push prices down, it won’t last forever.
In this space, a lot of people think strength now or for a number of months = strength always.
— CrediBULL Crypto (@CredibleCrypto) June 21, 2024
It's why we start hearing things like "Bitcoin supercycle" and "meme-coin supercycle" and "AI supercycle".
Newsflash- strength NOW almost always means weakness later.
Why?…
FET, RNDR, GRT holders take losses during the dip
Data from crypto intelligence tracker Santiment shows that FET, RNDR and GRT holders have consistently realized losses on their holdings during the recent correction. As holders shed their assets at a loss, it is likely that they expect the tokens to extend their decline and plummet lower.
The Network Realized Profit/Loss metric identifies the net profit/loss of all holders on a given day and shows negative spikes, meaning holders are taking losses in all three assets.
FET, RNDR, GRT network
At the time of writing, the three assets are down between 1.3% and 4.2% in the past 24 hours.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended Content
Editors’ Picks
Bitcoin and crypto market maintain decline despite Fed Chair Powell's hints at further rate cuts
The general crypto market continued on a downtrend on Monday despite Fed Chair Jerome Powell hinting at the possibility of further interest rate cuts later in the year.
Ethereum risks decline to $2,395 amid impressive ETF inflows
Ethereum traded around $2,600 on Monday, down 2% on the day. In the past 24 hours, ETH has seen $29.94 million in liquidations, with long and short liquidations accounting for $24.9 million and $5.04 million, respectively.
Dogwifhat and BONK defy crypto market decline
WIF and BONK are up about 6% in the past 24 hours. The meme coin market cap is down nearly 6% following declines sustained in DOGE, SHIB and PEPE. WIF could rally toward $2.939 if it smashes resistance near $2.643.
XRP fails to close above $0.65 support, while Ripple CEO offers optimistic outlook on crypto market cap
XRP fails to close above $0.6500, a key psychological barrier for the altcoin’s holders. The top Ripple executive made headlines for comments on the market capitalization of crypto expanding.
Bitcoin Weekly Forecast: $70,000 mark on sight as bulls remain strong
Bitcoin has risen around 3% so far this week, breaking above its range upper limit of $64,700. This gain was supported by increased institutional demand for ETFs, which recorded inflows of more than $612 million this week.
Five best Forex brokers in 2024
VERIFIED Choosing the best Forex broker in 2024 requires careful consideration of certain essential factors. With the wide array of options available, it is crucial to find a broker that aligns with your trading style, experience level, and financial goals.