Despite optimism that more crypto-friendly regulation will drive an altcoin season in 2025, the AI cryptocurrency sector has lost nearly a third of its cumulative market value.
According to CoinMarketCap data, as of 7:15 a.m. UTC, AI cryptocurrencies had a cumulative market value of $50.5 billion, down more than 28% from their peak of $70.4 billion on Dec. 7.
Cumulative trading volume for AI tokens has also declined, falling nearly 11% over the past month to $4.73 billion currently, perhaps indicating a decline in traders’ interest in such cryptocurrencies.
The nearly 30% drop in AI cryptocurrencies occurred amid a broader crypto market downtrend, with Bitcoin prices experiencing a correction of more than 14% from their all-time high of more than $108,000 on Dec. 17, according to Cointelegraph Markets Pro.
It is worth mentioning that a growing number of analysts are expecting an altcoin season in 2025, when profits from Bitcoin could flow into smaller cryptocurrencies including AI tokens. (Cointelegraph)