The Decline of AI Crypto Market
The value of crypto assets linked to artificial intelligence (AI) surged to $7 billion earlier this year. However, recent weeks have seen a reduction of $960 million in the overall worth of the AI crypto sector. Each of the leading five AI-focused digital assets has experienced a decline in their value, ranging from 6% to 16% when measured against the U.S. dollar over the past month.
Emergence of AI and Cryptocurrency
Since last year, the fusion of artificial intelligence (AI) and cryptocurrency technologies has become a significant trend. On Jan. 2, 2024, the market encompassing 82 AI-related crypto tokens attained a collective worth of $7.04 billion. However, current data reveals that this sector has experienced a loss of roughly $960 million, marking a decrease of 13.63% against the U.S. dollar over a span of 20 days.
Leading AI Crypto Tokens
Bittensor (TAO) witnessed a 6.06% drop and continues to lead with the highest market capitalization of $1.57 billion. Graph (GRT) experienced a 10.31% decline and has a current market valuation of $1.52 billion. Together, TAO and GRT constitute 50.82% of the total value of the AI-crypto economy. Fetch (FET) plummeted by 15.62%, while singularitynet (AGIX) suffered a decline of 16.28%. FET currently holds a market capitalization of $507 million, while AGIX has a net valuation of $354 million. Ocean protocol (OCEAN) occupies the fifth position with a market cap of approximately $255 million and has declined by 14.81%.
Growth of AI Crypto Sector
Over the past year, the AI crypto sector has experienced significant growth and now boasts a value greater than the total market cap of all privacy coins. However, it still remains considerably smaller compared to the meme coin market, which has a substantial market cap on Jan. 22.
Hot Take: The Impact of Declining AI Crypto Sector
The decline in the value of the AI crypto sector raises concerns about the stability and potential of these digital assets. It highlights the volatility and risks associated with investing in AI-focused cryptocurrencies. Investors need to carefully monitor and assess the performance of these assets to make informed decisions.
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