AI-focused crypto tokens are seeing a dip as Nvidia, the top AI chipmaker fueling the space, could soon take a major financial hit due to new U.S. export restrictions.

In a filing on April 14, Nvidia said it expects around $5.5 billion in charges for the first quarter of fiscal year 2026 because of U.S. government rules limiting its AI chip sales to China.

On April 9, officials told Nvidia it now needs special export licenses for its popular H20 chips and others with similar capabilities. The new restrictions target China, Hong Kong, and Macau, with the government warning that the chips could end up powering Chinese supercomputers.

The H20 chip is the most advanced AI chip Nvidia is currently allowed to sell in China under the earlier rules. It’s reportedly been used by Chinese AI startup DeepSeek to train models, something that has raised concerns among U.S. lawmakers.

Even though Nvidia said it plans to spend hundreds of millions over the next four years making some AI chips in the U.S., that hasn’t stopped the stock from sliding after its latest filing and the expected hit to future revenues. NVDA dropped 6.3% in after-hours trading on April 15 to $105.10, and it’s down about 16.45% so far this year.

Nvidia’s decline mirrors a wider pullback in tech as Trump’s tariff escalation rattles investor confidence across the sector. Other prominent tech stocks were also in the red, with Apple down 0.20% from the previous close to $202.14, Microsoft off 0.56% at $385.73, Alphabet sliding 1.71% to $156.31, and Amazon dropping 1.33% to $179.59.

Adding to Nvidia’s troubles, a “death cross” has formed on the 1-day NVDA/USD chart, a bearish technical signal where its 50-day moving average drops below the 200-day one. The last time this happened was in April 2022, and Nvidia’s stock plunged nearly 50% in the following six months.

That’s got investors in AI crypto tokens on edge, as these tokens have often reacted to Nvidia-related news mostly due to the fact that Nvidia’s hardware plays a central role in powering the AI infrastructure that many of these projects rely on. 

For instance, in December, reports of China launching an antitrust probe into Nvidia caused the AI crypto token market cap to drop by over 14% in a single day. In the past, a surge in the Nvidia stock price has also resulted in bullish rallies for AI tokens.

Following Nvidia’s latest filing, the total market cap of AI-related tokens has fallen 3.7% in the past 24 hours, now sitting at around $20.1 billion. Trading volume also declined, signaling weaker demand.

Near Protocol (NEAR), the biggest AI crypto by market cap, slid 5.3% over the past day. Other major tokens like Internet Computer (ICP), Render (RENDER), Sei (SEI), Virtuals Protocol (VIRTUAL), and Akash Network (AKT) also lost between 5% and 12%.

Franklin Templeton, a global asset manager with a growing presence in the crypto and blockchain investment market, has backed an $8 million seed round for Cap.

The asset manager led the investment round, with Ethereum (ETH) based stablecoin project Cap also attracting the participation of multiple leading web3-focused venture capital firms.  

In details shared via X, Cap said the investment is a crucial step in its mission to offer a decentralized solution to the problem of yield generation in decentralized finance. This milestone involves the deployment of its protocol across “shared security markets” such as EigenLayer and Symbiotic.

“Cap is pioneering a first of its kind implementation of shared security markets like EigenLayer and Symbiotic to regulate the activities of financial operators. This allows traditional finance institutions and crypto-native firms to generate yield for users, while not directly exposing those users to the risks of their activities,” the protocol’s team posted on X.

Per the Cap protocol team, the project’s solution is available to users looking to tap into shared security marketplaces. This means users can benefit from staked assets on Ethereum. However, Cap’s main focus is the adoption on MegaETH, the layer 2 offering for real-time interaction with opportunities across the ecosystem. 

It suggests safe and sustainable yield generation, something that could mean allowing for fresh innovation that beats the current yield-bearing stablecoins.

By being able to outsource yield generation through its stablecoin engine, Cap enables traction across a whole lot of blockchain applications, including DeFi protocols,real-world asset protocols, and liquid funds.

The $8 million seed round will help the stablecoin startup navigate the next phase of its adoption, with this adding to the $1.1 million raised via crowdfunding project Echo. Cap raised its latest financing round with the support of VC firms such as Triton Capital, Flow Traders, GSR and Japanese firm Nomura Group’s Laser Digital.

A new decentralized finance (DeFi) trading altcoin is surging after gaining support from the top US-based crypto exchange platform by volume.

In a new thread on the social media platform X, Coinbase says it’s adding the DeFi token Definitive Finance (EDGE) to its suite of digital asset products with an experimental label, causing the altcoin to skyrocket.

Coinbase’s experimental label designates assets as having higher volatility and lower trading volume compared to other products offered by the firm.

News of the addition sent EDGE flying, as the token went from an April 2nd low of $0.0274 to a peak of $0.1157 just a few hours later. The digital asset has since retraced and is trading for $0.086 at time of writing, a staggering gain of nearly 180% during the last 24 hours.

According to its official website, Definitive aims to mimic the experience offered by centralized exchange platforms, such as Coinbase and Binance, despite being decentralized.

“Definitive is the future of onchain trade execution. We deliver a CeFi-like experience on DeFi rails via a fully non-custodial platform and API (application program interface) that is live across Solana, Base and other major EVM (Ethereum virtual machine) chains.

With Definitive, anyone – from a retail user, to a whale, to a liquid fund, or even an AI agent – can trade any asset on any chain with the same institutional-grade execution found in CeFi.”

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Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

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