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AI agent token market cap declines 10% due to meme coin surge

AI agent token market cap declines 10% due to meme coin surge

GrafaGrafa2025/01/21 08:50
By:Mahathir Bayena

The recent launch of the TRUMP (CRYPTO:TRUMP) and MELANIA (CRYPTO:MELANIA) meme coins has significantly impacted the cryptocurrency market, leading to a 10% decrease in the market capitalisation of AI agent tokens.

According to CoinGecko, the market cap for AI tokens fell to approximately $12.6 billion, reflecting a broader trend of liquidity being drained from the sector as investors flock to meme coins.

In the wake of this shift, several leading AI tokens, including VIRTUAL (CRYPTO:VIRTUAL), AIXBT (CRYPTO:AIXBT), and AI16Z (CRYPTO:AI16Z), experienced substantial declines, with VIRTUAL dropping by 15% over the past 24 hours.

The surge in popularity of TRUMP and MELANIA tokens has created a climate of fear, uncertainty, and doubt (FUD) within the market, prompting many investors to sell off their AI holdings.

OxJeff, a prominent AI investor, noted that despite these challenges, the VIRTUAL ecosystem remains robust with unique agents and clear catalysts for growth in the coming month.

“Despite headwinds, Virtuals remains one of the best ecosystems with the most unique agents and clear catalysts for the next 30 days,” he stated.

Analysts expect that as the hype surrounding meme coins diminishes, liquidity will gradually return to AI agents.

The development of Decentralised Finance AI (DeFAI) is also seen as a key driver for resilience in the AI sector.

S4mmy, a crypto researcher, highlighted that projects like AIXBT and VIRTUAL continue to lead in analytics and infrastructure despite recent market fluctuations.

Moreover, significant advancements in generative AI are anticipated soon, with OpenAI's CEO Sam Altman scheduled to meet with U.S. officials on January 30.

This meeting could herald breakthroughs that enhance the capabilities of AI agents.

While current trends suggest a temporary liquidity drain due to meme coin dominance, analysts remain optimistic about the long-term growth potential of AI agent tokens.

As the market stabilises post-meme frenzy, it is expected that investor confidence will return to AI projects.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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