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AI tokens plunge 90 percent from 2024 peak

AI tokens plunge 90 percent from 2024 peak

Grafa2025/02/07 12:50
By: Mahathir Bayena
FET-0.15%AIOLD0.00%AGIX0.00%

Artificial Intelligence tokens experienced significant volatility, with some declining as much as 90% from their 2024 highs, although experts predict strong sector growth through 2025.

According to CoinGecko, top AI platforms like AI Rig Complex, ElizaOS, and Virtuals saw market capitalisation drops between 75% and 90% since January.

The downturn started in January, impacting AI agent tokens after significant gains in late 2024.

The total crypto market cap decreased by approximately 16% since January.

"Looking at the charts of ai16z, $arc, and even Fartcoin, it’s clear that the trend has been downward, and many believe these tokens may never recover to previous levels," noted Elon Money, a crypto trader, on X platform.

The launch of the Trump memecoin triggered a sell-off, with the AI cryptocurrency sector's total market cap dropping by $1.5 billion within an hour, cite CryptoQuant.

Trading volumes for pairs like FET/BTC and AGIX/ETH surged.

Active addresses for Fetch.ai increased from 5,000 to 7,500 in an hour, indicating widespread selling pressure, according to Glassnode.

Technical indicators like the Relative Strength Index (RSI) for FET fell from 70 to 45, and AGIX's RSI moved from 68 to 42.

Bearish crossovers were observed in the Moving Average Convergence Divergence (MACD) for both tokens, cite TradingView.

Correlation between AI tokens and major cryptocurrencies weakened.

According to Foresight Ventures, AI, consumer payments, and memecoins are key areas to watch in 2025.

They anticipate AI agents playing a bigger role in decentralised communities, with VanEck estimating 1 million AI agents on blockchain networks by the end of 2025.

Despite recent losses, Elon Money remains optimistic about the long-term potential, citing strong teams, partnerships, and integrations for frameworks like ElizaOS and Rig.

However, Vitalik Buterin has suggested slowing AI development to better manage potential risks.

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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