AI Tokens See Combined Market Cap Fall by $8 Billion in a Single Month

AI Token Market Cap Drops by $8 Billion in a Month Following Nvidia Stock Decline

AI tokens are facing a downward trend due to a recent drop in Nvidia’s stock value, which has sparked concerns within the crypto community. According to data from AltIndex.com, the combined market capitalization of the ten largest AI tokens has decreased by nearly $8 billion over the past month following Nvidia’s stock decline.

Artificial Superintelligence Alliance Hits Hardest, Falling 40% in a Month

Nvidia’s stock value decline was triggered by the U.S. government’s expanded export restrictions on AI chips to China. These restrictions, coupled with broader geopolitical tensions, valuation concerns, and profit-taking, contributed to a significant $660 billion drop in Nvidia’s stock value.

As a result, the value of the ten largest AI tokens also fell, with an average decline of 30% in the past month, erasing over $8 billion from their combined market caps.

Data from CoinMarketCap shows that the market cap of the top 10 AI tokens was $16.5 billion last week, down from $24.1 billion in July. Among these, the Artificial Superintelligence Alliance (FET) experienced the largest decline, with a 40% drop in market cap, losing nearly $2.7 billion in valuation.

NEAR Protocol also saw a significant drop of 37% month-over-month, with $1.5 billion lost from its market cap. Render experienced a 33% decrease, the third-largest drop among the top ten. DeXe and Akash Network followed with declines of 29% and 27%, respectively.

AI Token Market Cap Still 182% Higher Year-Over-Year

Despite the $8 billion drop in a single month, the overall valuation of AI tokens remains significantly higher compared to the previous year. Data from CoinMarketCap indicates that in August 2023, the combined market cap of Near Protocol, Artificial Intelligence Alliance, Bittensor, Injective, The Graph, and other top AI tokens was $5.86 billion, a 182% increase from their combined value last week.

Notably, the AIOZ Network and Artificial Superintelligence Alliance have shown exceptional growth. AIOZ Network’s market cap surged by 4,108% since last August, despite the recent decline. The Artificial Superintelligence Alliance also saw a 1,235% increase in market cap during the same period.