Despite Nvidia’s impressive first-quarter earnings report, cryptocurrency assets related to artificial intelligence (AI) are currently facing a decline. On May 23, Nvidia, a renowned provider of powerful chipsets in the AI field, exceeded analyst expectations with an 18% increase in revenue from the previous quarter and a staggering 262% increase from the previous year, reaching $24.6 billion.
Following the release of the earnings report after the New York Stock Exchange (NYSE) market closed on May 22, Nvidia’s stock (NVDA) saw a 6.06% rise in after-hours trading, reaching $1,007 at the time of writing. However, this positive news did not translate into a similar increase in AI token prices, disappointing some investors in the crypto space.
CoinMarketCap data reveals that just five hours after the earnings report, Render (RNDR), an Ethereum-supported platform for decentralized graphics processing units, experienced a 12% drop, causing its price to plummet to $10.38. This unexpected decline led to speculation that a significant wallet holder may be preparing for a sell-off, as evidenced by a whale wallet transferring approximately $52.1 million to an unknown wallet.
Interestingly, D0C Crypto, a prominent crypto investor and analyst, noted that RNDR did not experience a price increase until two days after Nvidia’s earnings report. This suggests that the impact of Nvidia’s success may take some time to materialize in the AI-related crypto market.
Other AI-related crypto assets also faced declines following Nvidia’s earnings report. For instance, The Graph (GRT) experienced a decline of around 4.77%, while Fetch.ai (FET) and SingularityNet (AGIX) fell by 6.42% and 6.25% respectively. Despite these setbacks, investors remain optimistic that Nvidia’s positive results will eventually benefit the broader crypto market and create a positive ripple effect.
It is essential for investors to exercise caution and conduct thorough research when considering investments in cryptocurrencies. Cryptocurrencies are known for their high volatility and accompanying risks, making it crucial for investors to make informed decisions based on their own analysis.
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