AI Token Soars, Nvidia Market Capitalization Drops Up To 13%

AI tokens soared, Nvidia's market cap fell to 13% (Photo; Doc. Techuseful)

JAKARTA - Although Nvidia's shares experienced a sharp decline over three consecutive trading days, AI-based crypto tokens showed resilience with a double-digit spike. Nvidia lost more than 430 billion US Dollars (approximately IDR 7 quadrillion) in market cap and decreased 13% from its peak. However, AI crypto tokens have continued to soar significantly in the last 24 hours.

Crypto traders observed Nvidia as a key indicator for the AI crypto market. Despite several cases of parallel movement, such as during Nvidia's Q4 2023 earnings report, the correlation was not seen at this latest assessment. Over the past five trading days, Nvidia's share price fell 11.16%, and is currently trading at 118.11 US Dollars (approximately IDR 1.9 million) according to Google Finance data.

According to CryptoPotato information, on Monday, Nvidia recorded its second-largest decline this year, with its shares falling 6.7%. Despite this decline, Nvidia's value has almost tripled over the past year. Last week, Nvidia surpassed Apple and Microsoft to become the most valuable companies in the US. However, data from Ycharts showed Nvidia's market capitalization fell from 3.3 trillion US Dollars (approximately IDR 5.4 quadrillion) to 2.9 trillion US Dollars (approximately IDR 47.6 quadrillion), losing its position as the top.

Although Nvidia, a leader in the Computing Artificial Intelligence, has seen a significant decline in share prices, AI crypto tokens have continued to show a steady increase in recent hours. The current AI market capitalization is slightly more than 29 billion US Dollars (approximately IDR 476 trillion), reflecting 8.7% changes in the last 24 hours.

Several major players such as Near Protocol, Match.ai, Internet Computer, Render, and The Graph recorded significant gains ranging from 3% to 25%. In the same period, the biggest drivers included Nosana and Commune AI, with a 37% and 35% increase, respectively, despite moderate to low market cap.

The decline in Nvidia's shares did not coincide with significant negative news or other catalysts, but concerns arose as Nvidia CEO Jensen Huang and other executives recently sold large quantities of shares. Since June 13, Huang has sold shares of Nvidia worth 79.38 million US Dollars (approximately Rp1.3 trillion), according to a filing report to the SEC on June 21, drawing great attention.

The Global Market Insider also highlighted in a recent post that Nvidia executives are selling their shares at the fastest ever. In addition, Barchart reports that Nvidia executives have collectively sold shares worth US$ 796 million (around Rp. 13 trillion) so far this year.