- Analysis of AI Token Price Drop
- Potential Impact of Nvidia’s Q2 Report
- Market and Traders' Expectations
AI tokens have seen a sharp decline in price since their ATH in March. According to data from CoinGecko, top AI coins including Near Protocol (NEAR), Internet Computer (ICP), Bittensor (TAO), and Render (RENDER) have all recorded significant price drops during the past months.
Analysis of AI Token Price Drop
Near Protocol (NEAR) price dropped from its 15 March ATH of $8.82 to $4.22, according to CoinGecko data. Internet Computer (ICP) recorded its ATH on March 27 at $19.14 and the coin is now trading at $7.74, according to the same data. Bittensor (TAO) price also dropped from its March 8 ATH at $728 to today’s price of $296. Render (RENDER)‘s price saw a decline from its ATH on March 18 at $13 to today’s price of $4.8, while The Graph (GRT)‘s price dropped from its March 10 ATH of $0.45 to $0.15 today. The weekly global trading volumes for these tokens have dropped significantly from their peak in Q1 2024, dropping to $2 billion at the beginning of August, according to data from Kaiko.
Potential Impact of Nvidia’s Q2 Report
Now, the markets expect Nvidia’s second quarterly report for 2024, as it could influence the AI tokens’ prices. Nvidia will post its fiscal Q2 earnings on August 28 and the results could trigger a price surge for AI-related tokens. AI tokens usually see a price boost triggered by the hype around AI projects such as Nvidia’s stock rise or breakthroughs like OpenAI’s ChatGPT.
Market and Traders' Expectations
AI tokens were mostly popular among South Korean traders, according to a June report from Bloomberg. The publication noted that Nvidia-loving South Korean crypto traders’ share of AI token trading surged to almost 19% in May after Nvidia posted its Q1 earnings report. The company’s revenue for Q1 2024 showed $26 billion which was an impressive increase of 18% from the previous year. According to official reports, the AI giant anticipates Q2 revenue of $28 billion, with GAAP and non-GAAP gross margins projected at 74.8% and 75.5%, respectively. According to Nvidia’s CEO, Jensen Huang, the next industrial revolution has begun and companies and countries are teaming up with Nvidia to shift the trillion-dollar traditional data centers to accelerated computing and build a new type of data center – AI factories.
Nvidia’s Q2 results could affect the AI tokens market as history has already shown how the broad crypto market is related to booms and busts in coins related to popular trends including AI.
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