Top AI-based Cryptocurrency Tokens Tumbled After AI Chip Giant Nvidia Corp. NVDA Reported Higher-than-Expected Earnings

Render RNDR/USD, the token with the "most significant" ties with the tech giant, was trading 3.79% lower at the time of writing

Cryptocurrency tokens linked to artificial intelligence dropped Wednesday evening despite AI chip giant Nvidia Corp. (NASDAQ:NVDA) reporting higher-than-expected earnings for the first quarter.

What Happened: Among the tokens with the strongest ties to the tech giant, Render (CRYPTO: RNDR) was trading 3.79% lower at the time of writing, according to data from Benzinga Pro.

The token witnessed gains ahead of the earnings announcement, rising to a two-month high of $11.81. However, profit-hungry traders seemed to have locked in gains immediately after.

RNDR's trading volume surged nearly two-fold in the last 24 hours, surpassing meme powerhouse Shiba Inu (CRYPTO: SHIB).

According to on-chain analytics firm Santiment, whale engagement with the AI token was on the rise.

An investor with a significant Render holding sent nearly 4.9 million tokens to an unknown wallet earlier, possibly selling them off.

Santiment alerted that holders of the token should prepare for higher volatility ahead.

Why It Matters: An X user going by the pseudonym CryptoDNA highlighted the factors behind RNDR's dip after Nvidia's blockbuster first-quarter earnings.

"Leverage is the reason we dipped. Imagine how many investors entered into 100x longs after the very bullish earnings call. You think the Market Makers would make it that easy?" the analyst commented.

That said, the analyst assured that "there's nothing to worry about" as it's part of the ebbs and flows of the market.

"We’re going so much higher, and RENDER will lead the entire AI sector. I've never been so bullish in my life, and my entire portfolio is built around RNDR," the analyst said.

The analyst's assertion had merit as the number of traders longing RNDR was seen increasing in the last few hours, according to data from Coinglass. This suggested a belief in the token's upside potential.

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