As the year comes to a close, the cryptocurrency market is showing signs of volatility, with AI cryptocurrencies experiencing a significant decline in value. Despite optimistic expectations of an incoming altcoin season driven by more crypto-friendly regulations during 2025, the cumulative market capitalization of AI cryptocurrencies has shed nearly one-third of its value.
Market Capitalization and Trading Volume Decline
As of 7:15 a.m. in UTC, the cumulative market capitalization of AI cryptocurrencies stood at $50.5 billion, down over 28% from their peak of $70.4 billion recorded on Dec. 7 (CoinMarketCap data). This decline is reflected in the 1-month chart below:
| Date | Market Capitalization |
| — | — |
| Dec 7 | $70.4 billion |
| Current | $50.5 billion |
AI Cryptocurrencies Market Capitalization – 1-month Chart
Source: CoinMarketCap
In addition to the decline in market capitalization, cumulative trading volume around AI tokens has also experienced a decrease. Trading volume fell nearly 11% during the past month to the current $4.73 billion, suggesting that trader interest in AI cryptocurrencies decreased.
| Date | Trading Volume |
| — | — |
| Last Month | $5.26 billion |
| Current | $4.73 billion |
Decline in Trader Interest
The near 30% drop in AI-based cryptos occurred during a wider crypto market downtrend, which saw Bitcoin’s (BTC) price experience an over 14% correction from its all-time high of above $108,000 on Dec. 17, according to data from Cointelegraph Markets Pro.
Bitcoin Price Correction
| Date | BTC Price |
| — | — |
| Dec 17 | $108,000+ |
| Current | $92,500 |
Incoming Altcoin Season: A Potential Boost for AI Cryptos
Increasingly more analysts are expecting an incoming altcoin season during 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
Altcoin Season and Its Benefits
Altcoin season, or altseason, tends to benefit from Bitcoin’s declining market dominance, which often means that investors are taking profit from their BTC positions and investing part of these funds into altcoins.
Crypto market flow:
| Asset | Market Share |
| — | — |
| BTC | 50%+ |
| Altcoins | 30% |
Can AI Cryptos Benefit from the Altcoin Season?
With the potential altcoin season on the horizon, AI cryptocurrencies may experience a resurgence in value. The 2025 altcoin season may start during the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja.
Fractal Patterns and Potential Trend Reversals
Total crypto market cap excluding BTC:
| Date | Market Capitalization |
| — | — |
| Dec 7 | $30.4 billion |
| Current | $22.1 billion |
Fractals:
- A few more weeks before mega altseason…
- Potential trend reversals based on historical data
Conclusion
As the cryptocurrency market continues to experience volatility, AI cryptocurrencies have shed over 28% of their cumulative value. Despite this decline, analysts are optimistic about an incoming altcoin season during 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
While some analysts foresee an Ether (ETH) rally to $5,000 in the short term, others are predicting an ‘impulse breakout’ to $15,000 by the end of 2025. As the market continues to evolve, it will be interesting to see how AI cryptocurrencies fare in the upcoming year.
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