The tokens linked to artificial intelligence (AI) have lost over a quarter of their market value. However, experts look to 2025 with optimism, predicting a recovery thanks to the altcoin season and favorable regulations.
Let’s see all the details in this article.
Altseason 2025: a glimmer of recovery for AI tokens?
As anticipated, the market for cryptocurrencies based on artificial intelligence (AI) is experiencing a period of strong contraction.
After reaching a peak capitalization of 70.4 billion dollars last December, AI tokens have lost 28% of their value, dropping to 50.5 billion dollars according to data from CoinMarketCap.
This decline represents one of the main setbacks for a sector that had shown great potential in the last year.
The trading volume of AI tokens has also experienced a significant contraction, recording a decrease of 11% in the last month and settling at 4.73 billion dollars.
This trend suggests a decrease in interest from traders, probably influenced by the general bear market of criptovalute.
Bitcoin, the main cryptocurrency, has undergone a correction of over 14% in the same period, contributing to a general climate of distrust.
The decline of the AI market fits into a broader context of weakness in cryptocurrencies. Many analysts attribute this dynamic to a mix of factors, including a reduction in investor confidence and regulatory uncertainty.
However, 2025 could represent a turning point for the sector.
The horizon of 2025: the season of altcoins
Analysts are watching with interest the so-called “altseason” expected for 2025, a period in which the dominance of Bitcoin could decrease, favoring an influx of capital towards smaller cryptocurrencies, including AI tokens.
During the altseason, investors tend to shift the profits obtained from Bitcoin towards more promising altcoins, creating a positive domino effect on these assets.
Elja, a popular trader in the cryptocurrency sector, shared on X (formerly Twitter) the idea that the altseason of 2025 could start as early as the first quarter, supported by fractal patterns indicating a possible price rally.
According to the trader, “a few more weeks before the mega altseason”.
In any case, the altcoin market will not only favor AI tokens. Ethereum (ETH), the second cryptocurrency by market capitalization, could play a key role.
Analysts predict a possible rally for Ether that could lead it to reach 5,000 dollars in the short term and even 15,000 dollars by the end of 2025.
Regulations and innovation as catalysts
Another key element for the recovery of the AI market will be the adoption of more favorable regulations. The anticipation of clear regulation could provide a framework for investors, encouraging confidence and the return of capital.
Furthermore, technological development and innovation related to artificial intelligence could fuel a new wave of interest in these digital assets.
In other words, despite the current decline, the AI cryptocurrency sector retains significant potential. With the approach of the altcoin season of 2025 and the adoption of more favorable regulations, investors might return to focus on these assets.
Artificial intelligence, combined with cryptocurrencies, indeed represents an innovative frontier that continues to generate interest and expectations, paving the way for new growth opportunities.
