The cryptocurrency market experienced a sharp downturn as artificial intelligence and big data-related tokens shed $4.69 billion in market capitalization over three days.
The market, which stood at $38.82 billion on Sept. 30, fell to $34.13 billion by Oct. 3, raising questions about the anticipated “UPtober” trend where investors hoped for a recovery in the market.
Despite October’s historical trend of being a favorable month for traders, this year is shaping up to be “Octo-bear” rather than “UPtober.”
Chart depicting market cap and volume of AI and big-data tokens. Source: CoinMarketCap
AI and big data tokens underwater
Among the leading AI and big data tokens, Near Protocol (NEAR) has experienced the steepest decline, with a 14.88% decrease over the past seven days. At the time of writing, the token is priced at $4.61.
Other top-performing tokens, like Bitensor (TAO) and Internet Computer (ICP), also experienced substantial price declines, shedding 9.37% and 13.35%, respectively, over the same time period.
This trend has affected the broader AI and big data market, with tokens like Render (RNDR) down 13.64% and Artificial Superintelligence Alliance (FET) down 16.68%.
Top coin performance of AI and big-data tokens. Source: CoinMarketCap
UPtober fails to deliver
Historically, October has been a period of strong gains and market stability, with many expecting Bitcoin (BTC) and altcoins to see upward momentum throughout the month.
However, 2024 has defied that trend, with nearly $5 billion wiped from the AI and big data token market cap just three days into October.
The broader crypto market has also seen a downward trend, driven by geopolitical factors such as the ongoing conflict in the Middle East, regulatory challenges and macroeconomic concerns.
It’s not so bad after all
Despite the recent downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion.
Considering the shift in pace from three months ago, the AI and big data token market is up over $13 billion, essentially trivializing the recent loss in market cap in October.
While the long-term trend for BTC in the fourth quarter and early 2025 seems positive, recent signs indicated there could be some short-term volatility in October.
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