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Crypto AI Agents Turn Bearish as Market Cap Drops 15% In 24 Hours

Crypto AI Agents Turn Bearish as Market Cap Drops 15% In 24 Hours
The crypto AI sector, which saw projects like VIRTUAL and AI16Z reaching record valuations, has been struggling since mid-January due to a shift in sentiment and the impact of DeepSeek. This has caused market caps to plummet and investors to question the sustainability of AI-driven blockchain projects. The sector has experienced heavy losses in the last month, with all top tokens declining. The market cap of the sector is currently at $8 billion, down 15% in the last 24 hours. VIRTUAL, a prominent AI agent token, has seen a sharp decline in price and market cap. The dominance of AI in the crypto space has also decreased, with other sectors like Memes, DeFi, and ETFs gaining more attention. To regain momentum, the crypto AI sector needs renewed confidence and a strong rebound. However, without fresh catalysts and a shift in sentiment, the recovery of AI coins remains uncertain.

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