Earlier this year, AI-based crypto assets began their journey with substantial gains, but recently, they have faltered before turning into a dragon.
At its peak in February 2023, the AI crypto market boasted a valuation of $4 billion.
However, within months, AI-based crypto has experienced a significant downturn, raising questions about its long-term prospects.
News Bitcoin reports that the current market value of AI crypto stands at $2.28 billion, representing a drawdown of $1.72 billion.
According to data from Kaiko, weekly trading volumes associated with AI-based crypto have declined significantly, casting a shadow over the previous sector’s enthusiasm.
Most of the top ten AI-focused crypto tokens have experienced losses. In particular, the digital numeraire (NMR) token has seen a sharp decline, plummeting by 37.47 percent in the last seven days.
Meanwhile, Graph (GRT), the largest AI token by market capitalization, dropped by 2.62 percent, and the second-largest AI token saw a 5.46 percent decline over the same period.
However, there are some exceptions to this downward trend. Tokens like dkargo and Phala Network managed to record significant gains, with increases ranging from 1.27 percent to 2.05 percent when measured in US dollars.
“Despite the controversial launch of Worldcoin at the end of July, weekly trading volume for AI-related tokens remained subdued in August,” Kaiko shared on the X social media platform.
Most of the spikes in trading volume for AI-related coins occurred during January and February 2023.
As of September 10, 2023, statistics reveal a stark difference, with a 24-hour trading volume of $159.11 million in AI crypto transactions.
This represents a significant change from the $1.6 billion 24-hour trading volume recorded on February 9, 2023.
The winding journey of AI-based crypto in 2023 serves as a reminder of the volatile nature of the crypto market.
While early success painted a bright picture, subsequent declines underscore the challenges and uncertainties inherent in the ever-changing digital landscape.
In the coming months, investors, analysts, and enthusiasts will closely watch to see whether the AI crypto market can regain its glory or take a different turn.
This news is only analytical and informative and is not a recommendation for investment in any way.
