AI tokens’ market value is down 28% from its $70B peak in December
Artificial intelligence (AI) cryptocurrencies have wiped out nearly a third of their total value despite optimism for the upcoming altcoin season, driven by more crypto-friendly regulations in 2025.
The total market capitalization of AI cryptocurrencies stood at $15 billion as of 7:15 a.m. UTC, down more than 28% from a peak of $70.4 billion on Dec. 7, according to CoinMarketCap data.
AI cryptocurrencies market capitalization. 1 month chart. Source: CoinMarketCap
Accumulated trading volume around AI tokens has declined, falling nearly 11% in the past month to a current $4.73 billion.
The 30% fall in AI-based cryptos came amid a broader crypto market slump, which saw Bitcoin (BTC) price correct more than 14% from its high of $108,000 on December 17, according to data from Cointelegraph. Markets Pro.
BTC/USD, 1-month chart. Source: Cointelegraph
A growing number of analysts are anticipating the coming altcoin era of 2025, which could see Bitcoin's profits flow into smaller cryptocurrencies, including AI tokens.
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Can altseason AI take off cryptos in 2025?
Altcoin season, or altseason, tends to benefit from Bitcoin's declining market dominance, which often means investors are taking profits from their BTC positions and investing a portion of these funds into altcoins.
Crypto market flow. Source: Rect Capital
The 2025 altcoin season may begin in the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja, who wrote in a December 27th post:
“A few weeks before the Mega Alseason…”
Total crypto market value excluding BTC. 1 month chart. Fractals Source: Eljaboom
In crypto trading, technical traders use price fractal patterns to identify key support and resistance levels and potential trend reversals based on historical data.
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Ether (ETH) price may also benefit from the altcoin rally and regain previous highs.
Some analysts see Ether rallying to $5,000 in the short term, while others predict a “major push” toward $15,000 by the end of 2025.
Bitcoin Could Explode After $100K—Here's Why Source: YouTube
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