​December Crash For AI Cryptos : What’s Next ?       

    Sat 28 Dec 2024 ▪
5
min read ▪ by
Luc Jose A.The crypto assets based on artificial intelligence, long seen as a revolution in the sector, are currently facing a major crisis. At the beginning of December, their market capitalization reached an impressive peak of $70.4 billion, reflecting the enthusiasm of investors for this new technological niche. However, within a few weeks, this valuation dropped by 28 %, now standing at $50.5 billion. This decline can be explained by both a general context of downturn in the crypto markets and a decreasing interest from investors, hindered by the lack of concrete use cases for AI tokens. Such a correction, while critical for some, fits into a cycle where altcoins might soon regain popularity. Experts remain optimistic about a potential rebound of these assets in 2025, thanks to a more favorable expected environment, especially with the altcoin season.A marked collapse in a slowing marketAt the beginning of December 2024, crypto assets based on artificial intelligence reached a staggering market capitalization of $70.4 billion. Yet, within a month, this valuation fell significantly to $50.5 billion, a loss of nearly one-third. This plummet is part of a global context of correction in the crypto markets, where even Bitcoin, the flagship asset of the sector, registered a decline of over 14 % from its last peak.Meanwhile, the trading volumes of AI tokens have also decreased. Thus, they fell by 11 % to $4.73 billion, according to data from CoinMarketCap. This decline reflects a decreasing interest from investors in these assets, both due to the typical low liquidity during the holiday season and growing doubts about their real added value. AI cryptos thrived thanks to well-orchestrated hype, but the absence of concrete use cases limits their long-term appeal. This situation further highlights the fragility of projects that rely on speculative enthusiasm rather than solid fundamentals.€20 bonus for registering on Bitvavo
This link uses an affiliate program.The hope for a rebound with the altcoin season in 2025Despite the recent drop in crypto assets based on artificial intelligence, many experts anticipate a possible recovery on the horizon of 2025. This outlook relies heavily on the altcoin season, a recurring phenomenon in the crypto market, where Bitcoin’s dominance decreases in favor of altcoins. Thus, these periods are often marked by a capital reallocation, which offers an opportunity for alternative assets to attract new investors. According to fractal analyses shared by trader Elja on social media X (formerly Twitter) on December 27, 2024, this dynamic could begin as early as the first quarter of 2025. Such an evolution could allow AI tokens to regain ground, provided that the underlying projects can reassure on their viability.Optimistic forecasts do not stop at crypto assets based on artificial intelligence. Major assets l