- NVIDIA shares dropped 8.69%, sparking a 20.3% decline in AI crypto market value.
- AI tokens like NEAR, ICP, and TAO suffered double-digit percentage losses.
- The sell-off highlights growing ties between AI crypto and traditional tech stocks.
NVIDIA shares took a steep dive in the last 24 hours, representing an 8.69% drop from the previous close of $124.92. The sell-off in the AI chip giant has also affected the cryptocurrency market, sending AI-related tokens into a similar downward spiral.
The artificial intelligence cryptocurrency sector has been particularly hard hit, with the total market capitalization falling 20.3% in the past 24 hours to approximately $25.22 billion as per CoinGecko data. Trading volume across AI tokens reached $4.07 billion during this period, indicating heavy selling pressure.
Source: Google
This market-wide correction has affected virtually all prominent AI-focused blockchain projects. NEAR Protocol dropped 14.6% over the past day, trading at $2.79. Internet Computer (ICP) declined 12.4% to $5.90, while Bittensor (TAO) experienced one of the steepest falls at 15.1%, bringing its price to $274.78. Other notable projects like Render (RENDER) and Artificial Superintelligence Alliance (FET) suffered losses of 15.1% and 18.8% respectively.
Story Protocol (IP) posted the largest percentage drop among major AI tokens, plummeting 25.1% despite showing a modest 3.2% recovery over the seven-day period. The Graph (GRT) and Sei (SEI) were not spared either, declining 14.4% and 13.3% in the 24-hour timeframe.
Source: CoinGecko
The synchronized decline between NVIDIA’s stock and AI cryptocurrencies highlights the growing correlation between traditional tech equities and the digital asset sector, particularly in specialized niches like AI tokens. NVIDIA, as the dominant supplier of graphics processing units (GPUs) crucial for both AI development and cryptocurrency mining, often serves as a key player in both industries.
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For AI cryptocurrencies, the correction comes after months of surging valuations driven by enthusiasm around artificial intelligence integration with blockchain technology. Many of these projects had seen triple-digit percentage gains since the beginning of the year, creating conditions ripe for a pullback.
For cryptocurrency investors focused on the AI sector, this correction provides an opportunity to evaluate the fundamental strengths of various projects. Those with working products, actual AI capabilities, and genuine utility may differentiate themselves during this market reset, while purely speculative tokens could face continued pressure.
