NOIDA (CoinChapter.com) — Nvidia made headlines at CES 2025 with its GeForce RTX 50 series launch and other announcements. Nvidia’s advancements have historically created optimism around AI-focused crypto projects, as investors view them as harbingers of broader AI adoption. However, the current trend seems different. Instead of sparking a rally, Nvidia’s announcements coincided with a sharp drop in AI-related crypto tokens, such as Render (RNDR), Bittensor (TAO), Internet Computer (ICP) and Near Protocol (NEAR).
The unusual deviation raised questions about whether the market’s enthusiasm for decentralized AI platforms has waned or if external factors drive the sell-off.
Nvidia’s CES 2025 Unveilings
At CES 2025, Nvidia CEO Jensen Huang unveiled innovations that could redefine AI technology. The highlight was the GeForce RTX 50 series, powered by the Blackwell architecture. The flagship RTX 5090 boasts 92 billion transistors and 3,352 trillion AI operations per second, doubling the performance of its predecessor. The new chip will retail for $1,999 and hit shelves alongside other models in the series on January 30, 2025.
Adding to the excitement, Nvidia introduced Project DIGITS, a $3,000 personal AI supercomputer for researchers and students. Set for release in May 2025, DIGITS operates independently of cloud systems and offers unparalleled performance for training AI models with up to 200 billion parameters. The compact system could revolutionize accessibility to high-end AI computing.
Nvidia’s announcements generated a lot of stir.Furthermore, Nvidia debuted the Cosmos AI Platform, a collection of foundational AI models for autonomous systems like self-driving cars and humanoid robots. Cosmos aids in building digital twins and optimizing industrial processes, further extending Nvidia’s reach beyond traditional tech sectors.
The company also strengthened its foothold in the automotive industry, announcing partnerships with Toyota and other major players. By integrating its Drive AGX Orin supercomputer and DriveOS into next-gen autonomous vehicles, Nvidia positions itself as a cornerstone in the race toward vehicle autonomy.
These innovations highlight Nvidia’s strategy to dominate the AI ecosystem, from consumer-level GPUs to enterprise-grade AI solutions. The launch of DIGITS, Cosmos, and the RTX 50 series underscores a broader ambition: making AI technologies more accessible while maintaining leadership in performance and innovation.
Announcements Fail To Excite AI Crypto Tokens
Despite Nvidia’s announcements, AI-related crypto tokens had a bad day. Major AI tokens, including NEAR, ICP, RENDER, and TAO, have experienced double-digit drops over the last 24 hours. The price of NEAR has dropped more than 15% since Jan. 7, resulting in the token losing nearly all of its gains since Jan. 1. Interestingly, market participants ignored the Nvidia news, with many AI crypto tokens continuing their downtrend.
NEAR, RNDR, ICP, AND TAO daily price charts. Source: Tradingview
Other crypto tokens, like RNDR, painted a price pattern similar to NEAR. RNDR prices also painted successive red candles on the daily charts, likely highlighting profit booking following the token’s recent 36% rally between Dec. 30 and Jan. 6. Similarly, Internet Computer’s ICP token price dropped more than 16% since Jan. 7 after a brief consolidation period following the token’s short-lived rally between Jan.1 and Jan. 3.
Bulls would likely try to hold the ICP price above $10. Meanwhile, TAO prices did not fare any better, plunging nearly 25.5% since Jan. 6 to reach a daily low near $438.4 on Jan. 8.
The broader cryptocurrency market downturn, profit-taking after previous rallies, and overbought conditions likely amplified the decline. Additionally, Nvidia’s emphasis on centralized AI ecosystems might have led to a perceived lack of synergy with blockchain-based AI projects. While Nvidia’s advancements highlight AI’s growing importance, their implications for decentralized AI remain unclear, raising concerns about the future integration of blockchain in AI-driven innovation.
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