Artificial intelligence (AI) tokens were once the fastest-growing segment in the crypto markets. Analysts and traders touted the potential synergies between crypto and AI, with crypto AI tokens blending AI’s utility with blockchain’s security and transparency. However, this narrative has shifted lately, with AI tokens posting major losses.
Monday, March 10, was not a great day for AI tokens. Many of the most popular tokens, such as NEAR, FET, and AGIX, lost almost 10% of their value. Moreover, NEAR, FET, and AGIX are down more than 30% over the last thirty days and 80% year over year.
Near Protocol (NEAR) was once a top-performing scalable layer-1 token, pivoting to AI to boost utility. However, its recent performance has been disappointing. NEAR is currently trading at $2.30, down 9.69% in just one day. This trend is not new, as the token lost almost 90% of its value since its all-time high of $20.42 in January.
SingularityNET (AGIX) is trading at $0.2073, posting a 9.74% loss the same day. The decentralized AI marketplace was hailed as a pioneer in making AI more accessible. However, AGIX’s performance since its ATH has been lower than NEAR’s, down 94.01% from $3.46.
At the same time, Artificial Superintelligence Alliance (FET) is down 10.28%. This token, which unites AI agent platform Fetch.ai, SingularityNET, and Ocean Protocol, was once considered the top AI token. However, FET is now 86.37% down from its ATH in March last year, which was $3.47.
Is the AI Token Hype Over?
There are several reasons why AI tokens have been struggling this year. For one, NEAR, FET, and AGIX, like other tokens, react to general crypto market trends. Since its ATH of $109,114 in January, Bitcoin lost more than $30,000 in value.
Furthermore, trends in the AI space have been unfavorable. Notably, after the release of the Chinese open-source AI model DeepSeek, many investors questioned the potential for AI models to deliver returns for investors.
Notably, Nvidia benefited significantly from the AI hype and dropped from its ATH of $149.43 in January to its current level of $106.98.
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