The cryptocurrency market has seen a sharp decline in AI-related tokens, with some losing as much as 90% of their value since their peak in early 2024. Despite their strong performance in late 2023, these tokens have struggled to maintain momentum, with analysts pointing to shifting liquidity rather than fundamental weaknesses as the primary cause.
It feels like we're close to the AI bottom.
— Emperor Osmo 🐂 🎯 (@Flowslikeosmo) February 7, 2025
> Marketcap is down 60%.
> Smart Engagement -63% from ATHs.
> AI mindshare has dropped to 32%
> KOLs are pivoting to other Metas.
Most telling for me is that the number of AI agents being launched has plateaued over the past month.… pic.twitter.com/S2dSvLyT7O
According to data from CoinGecko, top AI agentic platforms such as AI Rig Complex (ARC), ElizaOS (AI16Z), and Virtuals (VIRTUAL) have lost between 75% and 90% of their market capitalization since January. This comes as the total crypto market cap has dropped by nearly 16% from its 2024 highs.
The decline has been particularly pronounced in AI-related memecoins like Fartcoin, which has lost around 65% of its value in the last 30 days, bringing its market cap down to approximately $430 million. Overall, AI agent tokens have collectively fallen by over 40%, with their combined market capitalization dropping from over $10 billion to around $6 billion.
A key factor in this decline is the launch of Donald Trump’s Official TRUMP (TRUMP) memecoin on Jan. 18, which rapidly surged to an $80 billion market cap within a day. Traders believe this new token drew liquidity away from AI tokens and other emerging projects. Additionally, concerns over macroeconomic policies, such as Trump’s proposed 25% tariffs on Canada and Mexico, have contributed to a market-wide shift, impacting smaller, high-risk tokens the most.
AI Tokens Are Down 90% from ATH – Is This the End?
— ElonMoney (@0xelonmoney) February 6, 2025
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. But that couldn’t be further from the truth.
When it… pic.twitter.com/MWOXChrIeX
Long-Term Potential of AI Tokens
Despite the recent downturn, many traders and analysts remain optimistic about the long-term potential of AI tokens. Projects like ElizaOS and AI Rig Complex continue to attract interest due to their strong development teams, high-profile partnerships, and integrations with major blockchain ecosystems.
Agentic AI—systems capable of autonomously pursuing complex goals—are increasingly influencing the digital economy. These AI models are being integrated into Web3 applications, launching their own tokens, and interacting with users in new ways. Asset management firm VanEck projects that by the end of 2025, over 1 million AI agents will be operating within blockchain networks, potentially revitalizing the sector.
While the recent price drop reflects shifting market dynamics, the fundamental advancements in AI-driven blockchain projects suggest that the space may still have significant growth potential in the long run.
HODL Team
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