- Whales started collecting AI tokens when Nvidia saw profits.
- Declining network growth could negatively impact these tokens in the long term.
Interest in the AI tokens in the crypto space has grown significantly in recent days. One of the main reasons for the price increase for the AI tokens is said to be the behavior of whales.
Whales come in
Santiment’s recent data shows a notable increase in whaling activity within the AI sector and Render [RNDR] has been an important part of this trend.
A prominent whale made a substantial move on May 23 by transferring 4.89 million RNDR, worth $52.1 million, to an unknown wallet. This transaction took place during a period of price correction.
Source: Santiment
Nvidia comes to the rescue
One of the reasons for the price increase for AI tokens like RNDR was the success of NVDIA.
Chip tech giant Nvidia recently reported its first-quarter earnings, reporting record quarterly revenue of $26 billion, beating market expectations by 5.5%.
The rise in AI token prices coincides with investor expectations for Nvidia’s quarterly report. Nvidia’s success is seen as a step forward in the AI sector. That’s why AI tokens rose significantly after Nvidia’s earnings call.
But it wasn’t just RNDR that had benefited. Other tokens such as Fetch.ai [FET] and Bittensor[TAO] also witnessed a huge surge in interest, increasing by 20% and 5% respectively in the last week.
Read Renders [RNDR] Price forecast 2024-25
Although the price of these tokens soared, some problems remained. AMBCrypto’s analysis of Santiment’s data indicated that network growth for FET and RDNR dropped significantly.
This meant that the number of new addresses communicating with these tokens had plummeted. If the trend continues, it could cause major price corrections for these tokens in the future.
Source: Santiment