Cryptocurrencies powered by artificial intelligence have seen their collective market valuation drop by nearly 30%, falling from a peak of $70.4 billion in December to $50.5 billion. This decline coincides with a broader downturn in the crypto market, which also included a significant 14% price correction for Bitcoin from its record high of over $108,000.
Despite these setbacks, analysts are optimistic about a potential rebound in AI tokens during the anticipated altcoin season in 2025. The 2025 altcoin season is expected to begin in the first quarter, according to fractal trading patterns. This period typically involves investors reallocating profits from Bitcoin into smaller cryptocurrencies, including those in the AI sector.
Trading volumes for AI tokens have also dropped, experiencing an 11% decline over the past month, indicating reduced interest among traders. However, the upcoming altcoin season could shift this dynamic, potentially leading to increased investments in AI cryptocurrencies and a subsequent rise in their market value.
In parallel, Ethereum, another major player in the crypto space, may benefit from this shift, with some analysts predicting that Ether could not only revisit its previous all-time high but possibly surge to $15,000 by the end of 2025.
