The AI cryptocurrency market has faced a significant downturn, losing 40% of its value. This raises questions about the future of the industry.
Overall Market Trend
AI-based cryptocurrencies have experienced a sharp decline in market capitalization, dropping from over $10 billion to $6 billion. Over the past week, most of the leading tokens have significantly depreciated, showing a downward trend.
Major Losses and Their Causes
Fartcoin has lost 53% of its market cap, followed by Ai16z with 51%. Virtuals Protocol and aixbt have also shown significant declines. According to Crypto Stream, the reduction in liquidity and a shift towards large-cap altcoins are primary factors in this sharp downturn.
What Lies Ahead?
Some improvements in HENLO (+1%), VVV (+2.8%), and SNAI (+127%) tokens are noted. However, Crypto Stream cautions against taking risks in predicting the market bottom, highlighting the potential for missing it and the uncertainty around the projects reaching previous highs.
The AI crypto market remains volatile, and investors are waiting for signs of stabilization before making major decisions.
