Market Capitalization Drops Over 28% from Peak
Despite optimistic expectations of an incoming altcoin season driven by more crypto-friendly regulations during 2025, artificial intelligence (AI) cryptocurrencies have shed nearly one-third of their cumulative value. The cumulative market capitalization of AI cryptocurrencies stood at $50.5 billion as of 7:15 a.m. in UTC, down over 28% from their peak of $70.4 billion recorded on Dec. 7, according to data from CoinMarketCap.
AI Cryptocurrencies Market Capitalization
- 1-month chart: Link to the source
- Cumulative market capitalization: $50.5 billion
- Peak value: $70.4 billion (Dec. 7)
Trading Volume Declines by Nearly 11%
The cumulative trading volume around AI tokens also experienced a decline, falling nearly 11% during the past month to the current $4.73 billion, suggesting that trader interest in AI cryptocurrencies decreased.
Market Trend: A Wider Crypto Market Downtrend
The near 30% drop in AI-based cryptos occurred during a wider crypto market downtrend, which saw Bitcoin (BTC) price experience an over 14% correction from its all-time high of above $108,000 on Dec. 17, according to data from Cointelegraph Markets Pro.
Bitcoin Price Drop
- 1-month chart: Link to the source
- Price drop: Over 14% correction
- All-time high: Above $108,000 (Dec. 17)
Incoming Altcoin Season: A Potential Boost for AI Cryptos
Increasingly more analysts are expecting an incoming altcoin season during 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
What is Altseason?
Altcoin season, or altseason, tends to benefit from Bitcoin’s declining market dominance, which often means that investors are taking profit from their BTC positions and investing part of these funds into altcoins. This can lead to a surge in the price of smaller cryptocurrencies, including AI tokens.
Fractals: A Tool for Predicting Market Trends
Crypto traders use fractal patterns to identify key support and resistance levels and potential trend reversals based on historical data. Fractals are used to predict market trends, including the upcoming altcoin season.
Potential Altseason Timeline
The 2025 altcoin season may start during the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja, who wrote in a Dec. 27 Xpost: ‘A few more weeks before mega altseason…’
Fractals and Market Trends
- 1-month chart: Link to the source
- Fractal patterns: Used to predict market trends
- Potential altseason timeline: First quarter of 2025
AI Cryptos: A Potential Recapture of Previous All-Time High
Ether (ETH) price could also benefit from the altcoin rally and recapture its previous all-time high. Some analysts foresee an Ether rally to $5,000 in the short term, while others are predicting an ‘impulse breakout’ to $15,000 by the end of 2025.
Potential Price Targets for Ether
- Short-term: $5,000
- Long-term: $15,000
Conclusion
The market capitalization of AI cryptocurrencies has declined by nearly 28% from its peak value. However, analysts are expecting an incoming altcoin season during 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
While the potential price targets for Ether are high, it is essential to note that market trends can be unpredictable and subject to change based on various factors, including regulatory changes and technological advancements. As always, investors should conduct thorough research before making any investment decisions.
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