AI Crypto Sheds $2.60B as Nvidia Selloff Triggers October Rout
Key Summary
AI crypto tokens bled $2.60B in October after a 10%+ drop in Nvidia shares sparked sector-wide liquidations. According to CoinPaprika data, total sector capitalization contracted from $16.32B down to $13.72B over the 28-day span. NEAR Protocol shed over 16% of its valuation while traders eyed upcoming Apple earnings and U.S. midterm elections for near-term direction.
Key Bullets
- Total AI token market cap contracted by 16% in October, wiping out $2.60B from sector valuations.
- Data tracked by CoinPaprika showed overall sector capitalizations sliding from $16.32B down to $13.72B.
- NEAR Protocol dropped over 16% on spot exchanges, erasing half of its previous 178% September gains.
- Nasdaq 100 losses of 5.8% in October put over $2.00T at risk across correlated equity markets.
Nvidia Losses Trigger Crypto Token Rout
Artificial intelligence tokens shed $2.60B in market capitalization throughout October following a severe equity correction in major semiconductor stocks. According to exchange metrics tracked by CoinPaprika, the sector total fell from $16.32B on the 3rd of October to $13.72B by the 31st of October. Trading desks absorbed heavy selling pressure as risk sentiment deteriorated across correlated markets. The selloff wiped out a large portion of the 54% expansion recorded during September.
Equities faced aggressive downside momentum as late-October corporate filings revealed mounting infrastructure expenditures alongside uncertain commercial returns. Nvidia shares tumbled over 10% during the month, marking the worst monthly performance since the 2025 crash. Additional headwinds arrived when Intel and Amazon posted underwhelming quarterly updates. The Nasdaq dropped 2.86% in a single session, dragging digital asset order books down alongside traditional equities.
NEAR Protocol Erases September Gains
NEAR Protocol surrendered more than 16% of its spot market valuation during October as panic selling hit top-tier AI assets. On-chain order-book depth monitored by market aggregators showed the token losing over $200M in market cap. This sharp reversal erased almost half of the 178% rally logged throughout September. Momentum indicators turned bearish as spot buyers stepped away from risk-on allocations.
Traders at major liquidity providers reduced exposure to speculative altcoins as broader macroeconomic anxiety intensified. Order books on key CEX venues thinned out significantly during the final week of October. Volume dried up as participants waited for fresh catalysts.
Traders Watch Apple And Midterms
Market participants now focus on upcoming corporate earnings from Apple and the U.S. midterm elections to determine the next directional move for AI tokens. Strong performance metrics from mega-cap technology firms could stabilize sliding valuations across the broader digital asset economy. Disappointing earnings reports would invite additional downside risk for highly correlated altcoin sectors. Liquidity remains tightly bound to macroeconomic triggers.
Derivatives desks adjusted margin requirements ahead of the high-impact political and financial events scheduled for November. Open interest remained subdued as funds locked in defensive positioning. Traders braced for elevated volatility across both spot and perpetual markets.
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