Top 5 AI Crypto Tokens Experience Downturn, Sector Loses $960 Million in Value

Top 5 AI Crypto Tokens Experience Downturn, Sector Loses $960 Million in Value

The value of crypto assets linked to artificial intelligence (AI) surged to $7 billion at the beginning of the year. However, recent weeks have seen a reduction of $960 million in the overall worth of the AI crypto sector. Each of the leading five AI-focused digital assets has experienced a decline in their value, ranging from 6% to 16% when measured against the U.S. dollar over the past month.

AI Crypto Market Contracts

Since last year, the fusion of artificial intelligence (AI) and cryptocurrency technologies has emerged as a significant trend. On Jan. 2, 2024, the market encompassing 82 AI-related crypto tokens attained a collective worth of $7.04 billion. Current data reveals that this sector, now valued at $6.08 billion, has experienced a loss of roughly $960 million in the same period. This marks a decrease of 13.63% against the U.S. dollar over a span of 20 days.

Analyzing the 30-day performance, bittensor (TAO) witnessed a 6.06% drop, yet it continues to lead with the highest market capitalization of $1.57 billion. Graph (GRT) experienced a 10.31% decline, with its current market valuation standing at $1.52 billion.

Together, the market capitalizations of TAO and GRT constitute 50.82% of the total $6.08 billion value of the AI-crypto economy. Fetch (FET) plummeted by 15.62% this past month, while singularitynet (AGIX) suffered a decline of 16.28%.

Fetch (FET) currently holds a market capitalization of $507 million, while singularitynet (AGIX) has a net valuation of $354 million. In the rankings, Ocean protocol (OCEAN) occupies the fifth position with a market cap of approximately $255 million.

Compared to its value last month, OCEAN has declined by 14.81% against the U.S. dollar. The combined market capitalization of the top five AI-based cryptocurrencies – TAO, GRT, FET, AGIX, and OCEAN – represents 85.62% of the total worth of the AI crypto sector.

Over the past year, the AI crypto sector has experienced significant growth and now boasts a value greater than the total market cap of all privacy coins, which currently stands at $5.79 billion. However, the burgeoning AI digital currency sector is considerably smaller compared to the meme coin market, which has a substantial market cap of $21.53 billion on Jan. 22.

What do you think about AI tokens witnessing a market decline over the past month? Share your thoughts and opinions about this subject in the comments section below.