Artificial intelligence-focused cryptocurrencies, including Internet Computer (ICP) and NEAR Protocol (NEAR), experienced a sharp decline on November 11, as investor sentiment turned negative following a significant shift in the equity markets. This downturn was sparked by news that SoftBank Group had fully exited its $5.8 billion investment in Nvidia, a major player in the AI sector. The move raised fresh doubts about the short-term sustainability of the AI investment narrative, sending ripples across both traditional and digital asset markets.
By the end of the trading session on Tuesday, ICP had dropped by approximately 8%, while NEAR recorded a 6.5% decrease. Other AI-related tokens such as Bittensor (TAO), Render (RNDR), and The Graph (GRT) also followed suit, contributing to an average 7% slide across the AI crypto category. This sector-wide correction significantly outpaced the general cryptocurrency market, which saw a more modest 2% decrease in total market capitalization.
The decline in AI tokens coincided with a broader market reaction to Nvidia’s stock performance, which fell nearly 3% in the wake of SoftBank’s divestment. Investors interpreted the sale as a potential signal that the AI boom—driven by exponential growth in machine learning, data analytics, and GPU demand—may be approaching a plateau. As a result, risk appetite diminished, particularly in speculative digital assets tied to the AI narrative.
In the crypto space, the selloff extended beyond AI tokens. Bitcoin briefly rallied above $107,000 amid optimism spurred by the resolution of a U.S. government shutdown and talk of a proposed $2,000 dividend payment for select American citizens. However, the leading cryptocurrency quickly surrendered those gains, falling back below $102,000. This volatility underscored the fragility of investor confidence even in traditionally resilient assets like Bitcoin.
The selloff was further exacerbated by profit-taking, particularly in tokens like ICP and NEAR, which had recently witnessed strong rallies. As prices approached key resistance zones, cautious traders opted to lock in profits, triggering additional downward momentum. Analysts now suggest that both tokens may test critical support levels in the short term, potentially setting the stage for either a consolidation phase or further declines.
Traditional equity markets also felt the pressure. CoreWeave, a prominent crypto-focused data center and AI infrastructure company, saw its shares plummet by over 16%, closing at $88.39. The sharp drop was part of a broader retracement across AI-related equities, as investors recalibrated their expectations amid growing concerns over valuation bubbles.
SoftBank’s decision to offload all Nvidia holdings was seen as a strategic rebalancing move, but it fed into Wall Street’s increasingly cautious stance on artificial intelligence. The Japanese conglomerate’s exit, taken at face value, suggested that even major institutional players are rethinking their exposure to high-growth, high-risk tech assets.
Despite the day’s bearish sentiment, some analysts see opportunities in the correction. The dip in AI-linked cryptocurrencies could pave the way for accumulation by long-term investors who maintain confidence in the sector’s fundamental growth. With blockchain and AI increasingly intersecting—particularly in areas like decentralized inference networks, on-chain data analytics, and AI-driven DeFi tools—many believe that select projects may recover faster than others.
In particular, projects like The Graph, which serve as indexing protocols for blockchain data, are expected to gain renewed attention as AI applications require structured and accessible on-chain data. Similarly, Render’s decentralized GPU rendering solutions could benefit as demand for AI model training and deployment rises across metaverse and gaming platforms.
Moreover, the broader macroeconomic environment continues to evolve. As inflation data, interest rate decisions, and regulatory developments unfold, they will inevitably influence investor sentiment in both traditional and digital markets. Should macro conditions stabilize and AI adoption continue at pace, the current pullback may be viewed in hindsight as a healthy correction rather than the beginning of a prolonged downturn.
Looking ahead, the performance of ICP, NEAR, and other AI-centric tokens will likely depend on a combination of technical levels, institutional sentiment, and ongoing innovation within the sector. Key support zones—currently under watch—will play a crucial role in determining whether the next move is a rebound or further decline.
In conclusion, the recent slump in AI-related cryptocurrencies, led by Internet Computer and NEAR Protocol, reflects growing uncertainty around the AI investment theme amid broader market volatility. While the selloff has shaken short-term confidence, it also presents a potential entry point for strategic investors who believe in the long-term convergence of blockchain and artificial intelligence. As the market finds its footing, all eyes will remain on how these technologies evolve—and how investors position themselves for the next phase of digital disruption.