Two weeks later, however, interest has cooled off. The sub-sector has lost 16.7% over the past seven days, compared to a 6.9% contraction in the broader crypto market, according to Lewis Harland, portfolio manager at Decentral Park Capital., has lost 19% of its value in the past week, according to data from CoinGecko.
AI crypto tokens such as Render have been more strongly correlated with Nvidia shares, compared to the wider crypto market, said Harland. The token diverged from other AI-related projects since the start of the second quarter, he said. The Render Network aims to, a type of computing-intensive image processing that is integral to creative industries, virtual reality and generative AI tools such as Midjourney.
“You can think of Nvidia as representing the supply/production layer, Render as the distribution layer, and Midjourney as the application layer,” he said.