AI-Related Cryptos Slip Despite Nvidia's Strong Q1 Earnings; Traders Remain Optimistic
Summary:
Despite Nvidia's notable Q1 earnings report, AI-focused cryptocurrency values saw a surprising fall. Render (RNDR) experienced a 12% drop in value, with other AI-related tokens also recording similar decreases. Nonetheless, traders remain optimistic that Nvidia’s positive results will eventually boost the wider crypto market.
Despite the impressive Q1 earnings report from Nvidia, the value of AI-related cryptocurrencies unexpectedly took a minor hit. Nvidia - recognized for its high-performance chipsets used in AI processes - reported an upsurge of 18% in Q1 revenue from the previous quarter and an incredible 262% increment from the same period last year, outperforming the forecasted $24.6 billion, as reported by Cointelegraph on May 23. The report was made public after the close of NYSE market on May 22 leading to a 6.06% rise in after-hours trading for NVDA, touching $1,007 at the time of compiling this report, based on information from Yahoo Finance.
Contrary to some AI token traders' predictions, the encouraging results did not reflect in a similar rise in AI token values. In just half a day following the publication of the report, Render (RNDR), a platform driven by Ethereum which enables decentralized GPU rendering, experienced a drop of 12% in its value, declining to $10.38 as per CoinMarketCap information. An identified ‘whale’ wallet meanwhile dumped around $52.1 million to an anonymous wallet today, possibly indicating that major stakeholders anticipated a 'sell the news' event, according to Santiment, a cryptocurrency research company. As of now, RNDR trades at $10.52, recording a 5.51% dip in the last 24 hours.
D0C Crypto, an unnamed crypto trader, highlighted that RNDR only saw a rise in value two days after Nvidia’s previous earnings report. "During the Nvidia Q4 earnings event in February RNDR jumped 38% in 48 hours. If this past pattern repeats, RNDR could potentially surge above $15 from its current value within the next 48 hours!,” they stated in a May 22 post.
Other affected AI-focused tokens include The Graph (GRT), a protocol designed to enhance blockchain data queries which fell around 4.77%, together with Fetch.ai (FET) dropping 6.42%, and SingularityNet (AGIX) registering a 6.25% dip.
Despite the setback, traders are optimistic that Nvidia’s performance will ultimately ripple through the broader crypto sphere positively. “The total Nvidia market cap just touched 2.5 trillion dollars, more than the entire crypto space, and you're doubting the potential of AI this cycle?” one crypto trader named Bishara questioned his 18,000 followers on May 22. “The success of Nvidia equates to stocks doing well, which therefore equals crypto performing well,” another trader named Plazma added.
Please note this article does not constitute investment guidance or suggestions. There are always risks associated with investments and trading moves and readers are advised to do their own research before making any decisions.
Published At
5/23/2024 9:00:53 AM
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