AI Crypto Tokens Crack Despite Nvidia's Q2 Earnings Beat—But YTD Performance Aligns With Tech Stock's Blockbuster Run

Artificial intelligence-based cryptocurrencies slumped after AI powerhouse Nvidia Corp. NVDA reported its second-quarter earnings Wednesday.

What happened: The AI-based collaborative token, FET, and TAO, the native token of the decentralized AI platform, Bittensor, shed 7% in the last 24 hours. 

Similarly, RENDER, underpinning the Render Network, tumbled 4%. The total market cap of AI cryptocurrency tokens contracted by 3% to $23.29 billion over the past 24 hours, according to CoinGecko.

The chip-making giant's second-quarter earnings and revenue beat Wall Street estimates. But despite the better-than-expected performance, shares of the chip-making giant were down nearly 7% in after-hours trading, suggesting that investors’ lofty expectations were not met.

See Also: Donald Trump’s Pro-Bitcoin Stance Influenced Ethereum ETF Approval, Analyst Posits

Despite Wednesday's pullback, AI-related tokens posted healthy gains over the week, with FET and RENDER gaining 20.8% and 16.1%, respectively. 

Year-to-date, FET has soared 75%, while RENDER and TAO mopped up gains of 18% and 10%, respectively. 

The surge coincided with Nvidia’s staggering 160% gains since the start of the year, positioning the tech company as the market's best performer for 2024.

Price Action: Shares of Nvidia closed 2.10% lower at $125.61 during Wednesday’s regular trading session, according to data from Benzinga Pro. 

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