Artificial intelligence (AI) coins have lost nearly a third of their total market value, despite expectations of an altcoin season triggered by more crypto-friendly regulations in 2025. The total market value of AI-based cryptocurrencies fell 28% to $50.5 billion from $70.4 billion on Dec. 7, according to CoinMarketCap data.
Trading volume around AI tokens also fell by nearly 11% last month to $4.73 billion, suggesting waning investor interest and weakening demand for AI cryptocurrencies. The 30% decline in AI-based cryptocurrencies comes in tandem with Bitcoin’s broader crypto market decline. Bitcoin has corrected 14% since reaching an all-time high of $108,000 on Dec. 17. But more and more analysts are predicting an altcoin season in 2025 as Bitcoin profits are funneled into smaller cryptocurrencies, including AI tokens.
Altcoin seasons are usually more pronounced when Bitcoin’s market dominance declines. This means that investors shift the profits from their Bitcoin positions into altcoins. Popular crypto trader Elja claimed in an X post that an altcoin season could begin in the first quarter of 2025. Elja noted that price fractal patterns based on historical data help technical traders identify key support and resistance levels.
Experts predict that Ethereum could also benefit from this altcoin rally and reach its previous all-time high. Some analysts predict that Ether’s price could rise to $5,000 in the short term, while others say an “impulse breakout” of $15,000 could occur by the end of 2025.
Artificial Intelligence (AI) coins refer to cryptocurrencies and tokens that have been integrated with artificial intelligence technologies. These tokens are designed to leverage AI in various areas, such as improving blockchain operations, personalizing user experiences, or facilitating automated trading.