AI token market cap down 28% from December peak of $70 billion
AI-powered cryptocurrencies have fallen by around 30% in value, but analysts are predicting a potential rebound during the altcoin season in 2025.
AI-powered cryptocurrencies have lost nearly a third of their cumulative value, despite optimistic forecasts for the upcoming altcoin season driven by more crypto-friendly regulations through 2025.
The cumulative market cap of AI-powered cryptocurrencies stood at $50.5 billion as of 7:15 a.m. UTC, down more than 28% from its peak of $70.4 billion recorded on Dec. 7, according to CoinMarketCap data.
AI-Powered Cryptocurrency Market Cap. 1-Month Chart. Source: CoinMarketCap
The cumulative trading volume around AI tokens has also seen a decline, falling by about 11% over the past month to $4.73 billion currently, indicating a decline in trader interest in AI cryptocurrencies.
The nearly 30% drop in AI-based cryptocurrencies occurred during a broader downtrend in the crypto market, which saw Bitcoin fall
Bitcoin
Low indicators
$94,623
Prices have seen a correction of more than 14% from its all-time high of over $108,000 on December 17, according to data from Cointelegraph Markets Pro.
Cointelegraph
A growing number of analysts are predicting a new altcoin season in 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
Related: Bitcoin Unaffected by $14 Billion Option Expiration, Puts It at $110K Bitcoin Target
Could Altseason Raise the Bar for AI Crypto in 2025?
Altcoin season, or altseason, tends to take advantage of Bitcoin's declining market dominance, which often means investors take profits on their BTC positions and invest a portion of that money into altcoins.
The 2025 altcoin season could start during the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja, who wrote in an X post on December 27:
"A few more weeks before the huge alternate season..."
In cryptocurrency trading, technical traders use fractal price patterns to identify key support and resistance levels and potential trend reversals based on historical data.
Related: Buterin Adopts Mo Deng, Birthday Wishes for Missing $773 Million Bitcoin Wallet - Finance Redefined
ether
Ethereum
Low indicators
$3,344.37
The price may also benefit from the altcoin rising and reclaiming its previous all-time high.
While some analysts expect Ether to rise to $5,000 in the short term, others predict a “sudden spike” to $15,000 by the end of 2025.
Bitcoin Could Explode After Reaching $100K - #BitwiseBitcoinETF #BtcNewHolder #Crypto2025Trends #RideTheKaiaWave
