Tokens linked to artificial intelligence (AI) have underperformed compared to major cryptocurrencies in the past 24 hours, with a notable decline in prices coinciding with a surge in put options trading for Nvidia (NVDA). This unusual activity comes after Nvidia’s announcement on Monday that it will begin building AI supercomputers in the U.S.

While Bitcoin (BTC), the largest cryptocurrency by market cap, rose 0.6% to $85,500, tokens associated with AI blockchain projects faced more substantial losses. Bittensor’s TAO token dropped 3.6% to $239, and Render Network’s RNDR token fell 1.7% to $3.93, according to data from CoinGecko. Other AI-focused tokens like FET, SEI, and GRT lost about 2% as well.

A notable uptick in Nvidia put options activity was observed on Monday, as tracked by Convex Value. A significant portion of the activity was in short-term $100 strike put options, expiring on April 17, April 25, and May 2. In addition, there was trading in $60 put options set to expire on April 17, and $50 and $85 strike puts expiring on May 16.

Convex Value flagged this surge in out-of-the-money put options, where the strike price is lower than Nvidia’s spot price of $110, as unusual. “This looks like a defensive strategy,” explained an analyst at Convex Value, suggesting that traders may be positioning for potential downside risk in Nvidia’s stock price.

Put options are typically purchased as a way to hedge against market declines or to profit from a decrease in the underlying asset’s price. The rising demand for these put options has led some to speculate that there may be insider knowledge influencing this protective strategy.

“Someone knows something,” posted Merlin Capital, an analytics service, on X, implying that the increased put option activity could be signaling a potential shift in the market or an upcoming move by Nvidia.