The rapid rise of crypto backed by artificial intelligence in 2024 suggested a decisive turning point for the convergence between blockchain and AI. However, the market is now experiencing a sharp drop in the value of these tokens.
The Fall of AI Tokens and Investor Reaction
The sudden fall of AI tokens came as a surprise to many investors. Tokens from projects like AI Rig Complex (ARC), ElizaOS (AI16Z), and Virtuals (VIRTUAL) have lost 75 % to 90 % of their market capitalization since January. Even Fartcoin, which captured attention in 2024, plunged by 65 % in 30 days. This decline occurred in the broader context of a crypto market contraction, which lost 16 % since the beginning of the year.
Impact of Liquidity Changes
The drop in AI tokens seems to have been amplified by a major exogenous event: the launch of the TRUMP meme coin in January. The token, associated with Donald Trump, attracted $80 billion in capitalization in just 24 hours, draining liquidity for other assets. Political uncertainty has further intensified investor distrust, with the most speculative cryptos being the first to feel selling pressure.
Future of AI Tokens
Despite the current situation, some experts believe AI tokens have the potential for a long-term rebound. Projects like ElizaOS and Rig feature strong teams, high-echelon partnerships, and integrations with major blockchains. The number of active autonomous AIs on blockchains is expected to exceed 1 million by year-end, potentially amplifying their impact on the crypto ecosystem.
The fall of AI tokens marks a critical point for this new class of assets. Their future will depend on their ability to provide concrete uses and demonstrate value beyond speculation.
