Artificial intelligence (AI) coins have lost nearly a third of their cumulative value, despite optimistic expectations for an altcoin season in 2025 that will lead to more crypto-friendly regulations. According to CoinMarketCap data, the cumulative market capitalization of AI cryptocurrencies declined. It has fallen by more than 28% from the peak of $70.4 billion recorded on December 7. The current amount stands at $50.5 billion.
Artificial intelligence coins decline
The cumulative trading volume around AI tokens also fell nearly 11% to $4.73 billion in the past month, indicating that investor interest in AI cryptocurrencies is waning. The nearly 30% drop in AI-based cryptos occurred during Bitcoin’s broader crypto market downtrend. According to market data, the price of Bitcoin experienced a correction of over 14% after hitting an all-time high above $108,000 on December 17. More and more analysts are expecting an altcoin season in 2025 that could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
Will altcoin season boost AI coins in 2025?
Altcoin season, or altseason, tends to capitalize on Bitcoin’s declining market dominance. This often means that investors are taking profits on their BTC positions. It also means that they invest some of these funds in altcoins. The 2025 altcoin season could start in the first quarter of 2025 based on fractal models shared by popular crypto trader Elja, who wrote in an X post on December 27th. Indeed, the trader made the following assertive statements:
Mega altcoin season is just a few weeks away.
In crypto trading, technical traders use price fractal models to identify key support and resistance levels and potential trend reversals based on historical data. According to experts, the Ethereum price could also benefit from the altcoin rally and recapture its previous all-time high. Some analysts predicted that Ether will rise to $5,000 in the short term. Others predict an “impulse breakout” to $15,000 by the end of 2025. As a result, AI cryptocurrencies have lost about 30% of their value. But analysts predict a potential rebound in the 2025 altcoin season.
What are AI coins?
Artificial Intelligence (AI) coins refer to cryptocurrency coins and tokens integrated with artificial intelligence technologies. These tokens are typically designed to leverage AI in various ways, such as enhancing blockchain transactions, personalizing user experiences, or facilitating automated trading.
To stay up-to-date with the breaking news, follow us on Twitter, Facebook, and Instagram. Join our Telegram and YouTube channel
