The market capitalization of artificial intelligence (AI) cryptocurrencies has experienced a significant decline, plummeting 28% from its peak of $70.4 billion in December. Recent data indicates the market cap for AI tokens stands at $50.5 billion, accompanied by a nearly 11% drop in trading volume over the past month, now at $4.73 billion. This downturn coincided with a broader market correction, as evidenced by Bitcoin’s price falling over 14% from its all-time high above $108,000 recorded mid-December.
Despite the current bearish trend, industry analysts are optimistic about a potential recovery for AI tokens during a forecasted altcoin season in 2025. This altseason could benefit from Bitcoin’s declining market dominance, prompting investors to shift profits from Bitcoin to altcoins like AI tokens.
Looking ahead, experts suggest the altcoin season might commence in the first quarter of 2025, based on patterns observed in the cryptocurrency market. During this period, Ethereum (ETH) could also experience a resurgence, with some analysts predicting a rise to $5,000 in the near term and even an ambitious target of $15,000 by the end of 2025.
As the market anticipates these developments, the focus remains on evolving regulatory environments and trading patterns, which could shape the future trajectory of AI cryptocurrencies.
