AI-focused cryptocurrencies faced significant losses following news of China’s antitrust investigation into Nvidia, a leader in AI chip production. The market capitalization for AI-related tokens dropped 14.6% in 24 hours, reaching $40.56 billion as of press time.
Major Tokens Take a Hit
Several prominent AI coins experienced steep declines:
- NEAR Protocol, the largest AI token by market cap, dropped 8.6%, trading at $6.65 per coin.
- Render, Akash Network, The Graph, and Fetch.ai saw losses of 9.7%, 9.6%, 8.6%, and 8%, respectively.
- Other tokens, including Bittensor, Arkham, Livepeer, and Flux, faced declines ranging from 12% to 16%.
Nvidia Probe Sparks Market Concern
The downturn followed reports that China’s State Administration for Market Regulation is investigating Nvidia for potential violations of anti-monopoly laws. Regulators have accused Nvidia of breaching commitments related to its 2020 acquisition of Mellanox Technologies, an Israeli chip design company.
The investigation could have significant implications for Nvidia, which derives about 15% of its revenue from Chinese customers. On Tuesday, Nvidia’s shares fell 2.55%, closing at $138.81 in New York markets.
Historical Sensitivity to Nvidia News
AI-related crypto tokens have shown sensitivity to Nvidia’s market performance in the past. In September, similar tokens suffered double-digit losses after Nvidia faced a U.S. antitrust subpoena, resulting in its largest single-day market value drop.
Broader Market Turmoil
The slump in AI tokens coincided with a broader crypto market crash. Bitcoin, the industry’s benchmark asset, briefly dropped below $95,000 on Dec. 10, down from an intraday high of $100,200. The flash crash led to a 6.8% decline in the total crypto market, triggering $1.7 billion in liquidations within 24 hours.
As the Nvidia probe unfolds, the AI crypto market remains volatile, with investors watching for further developments that could shape its trajectory.
