The AI agents crypto sector has experienced significant losses, with its total market capitalization dropping below $5 billion. This has raised concerns about the sector's stability and long-term potential. The decline has affected almost all AI tokens, with a 77.5% decrease from its peak. The top 10 AI tokens have also recorded double-digit losses over the past week. The downturn is spread across multiple blockchains, with Solana's AI Agents sector experiencing a 4.3% decline and Base's AI sector dropping by 5.8%. Despite the decline, some experts believe that with the right catalyst, the sector could recover and reach new heights, pointing to AI technology advancements, retail engagement, regulatory clarity, and institutional investment as potential growth drivers. Additionally, there is a possibility of a meme coin resurgence acting as a short-term catalyst.
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