AI cryptos collapse 28% in one month

Cryptos based on artificial intelligence, long seen as a revolution in the sector, are currently facing a major crisis. At the beginning of December, their capitalization reached an impressive peak of $70.4 billion, which demonstrates the enthusiasm of investors for this new technological niche. However, in the space of a few weeks, this valuation fell by 28%, and now stands at $50.5 billion. This decline can be explained both by a general context of decline in the crypto markets and by a decreasing interest from investors, hampered by the lack of concrete use cases for AI tokens. Such a correction, although critical for some, fits into a cycle where altcoins could soon regain popularity. Experts remain optimistic about a potential rebound in these assets in 2025, thanks to an expected more favorable economic situation, particularly with the altcoin season.

A marked collapse in a market losing momentum

At the start of December 2024, cryptos based on artificial intelligence reached a dizzying capitalization of $70.4 billion. Yet within a month, that valuation fell significantly to $50.5 billion, a loss of nearly a third. This tumble is part of an overall context of correction in crypto markets, where even bitcoin, the sector's flagship asset, recorded a decline of more than 14% compared to its last peak.

At the same time, the trading volumes of AI tokens have also decreased. Thus, they decreased by 11% to reach $4.73 billion, according to data from CoinMarketCap. This decline reflects declining investor interest in these assets, both due to the low liquidity typical of the holiday season and growing doubts about their real added value. AI cryptos have thrived on well-orchestrated hype, but the lack of concrete use cases limits their long-term appeal. This situation sheds more light on the fragility of projects which depend on speculative enthusiasm rather than solid fundamentals.

Hope for a recovery with the altcoin season in 2025

Despite the recent fall of artificial intelligence-based cryptos, many experts see a possible recovery by 2025. This outlook is largely based on the altcoin season, a recurring phenomenon in the crypto market, where the dominance of bitcoin decreases in favor of altcoins. Thus, these periods are often marked by a reallocation of capital, which offers an opportunity for alternative assets to attract new investors. According to fractal analyzes shared by trader Elja on the social network to reassure them about their viability.

The optimistic predictions don’t stop at AI-powered cryptos. Major assets, like Ether, could also benefit from this trend. While some observers anticipate Ether returning to its all-time highs, others envision an even more dramatic rise, with projections reaching as high as $15,000 by the end of 2025 in the crypto market. However, this optimistic view is tempered by calls for caution. For AI tokens to fully benefit from the altcoin season, they must rely on solid fundamentals and compelling use cases. Without these elements, the risk of extreme volatility could continue to hinder their adoption.

The future of cryptos based on artificial intelligence rests on their ability to meet investors' expectations, thanks to the development of concrete use cases and the establishment of strategic partnerships in the technological field. Although the altcoin season predicted for 2025 may offer renewed interest and a window to catch up, it will not be enough to guarantee their long-term success. Only solid foundations and tangible innovations will allow these crypto projects to establish themselves sustainably in an increasingly competitive market.