Despite optimistic expectations of an incoming altcoin season driven by more crypto-friendly regulations during 2025, artificial intelligence (AI) cryptocurrencies have shed nearly one-third of their cumulative value. The market capitalization of AI cryptocurrencies stood at $50.5 billion as of 7:15 a.m. in UTC, down over 28% from their peak of $70.4 billion recorded on Dec. 7, according to CoinMarketCap data.
AI Cryptocurrencies Market Capitalization
- Current Value: $50.5 billion
- Peak Value: $70.4 billion (Dec. 7)
- Decline: Over 28% from peak value
Cumulative Trading Volume of AI Tokens Declines by Nearly 11%
The cumulative trading volume around AI tokens also experienced a decline, falling nearly 11% during the past month to the current $4.73 billion, suggesting that trader interest in AI cryptocurrencies decreased.
Cumulative Trading Volume of AI Tokens
- Current Value: $4.73 billion
- Decline: Nearly 11% from previous month
Wider Crypto Market Downtrend Contributes to Decline in AI Cryptos
The near 30% drop in AI-based cryptos occurred during a wider crypto market downtrend, which saw Bitcoin’s 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.
BTC/USD Price Movement
- All-Time High: Above $108,000 (Dec. 17)
- Correction: Over 14% from all-time high
Analysts Expect Incoming Altcoin Season in 2025
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 Potential Impact
- Expected Start: First quarter of 2025
- Potential Benefits: Flow of Bitcoin profits into smaller cryptocurrencies
Altcoin Season: What Is It?
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
- Typical Pattern: Investors take profit from BTC and invest in altcoins
Fractal Patterns Suggest Altcoin Season May Start Soon
The 2025 altcoin season may start during the first quarter of 2025, based on fractal patterns shared by popular crypto trader Elja, who wrote in a Dec. 27 Xpost:
"A few more weeks before mega altseason…"
Fractal Patterns
- Shared by Elja: Fractals suggest altcoin season may start soon
- Potential Start Date: First quarter of 2025
Technical Traders Use Price Fractal Patterns to Identify Key Support and Resistance Levels
In crypto trading, technical traders use price fractal patterns to identify key support and resistance levels and potential trend reversals based on historical data.
Price Fractal Patterns
- Used by Technical Traders: To identify key support and resistance levels
- Based on Historical Data: Fractals help predict future market movements
Ether (ETH) Price Could Benefit from Altcoin Rally and Recapture Previous All-Time High
Ether (ETH) price could also benefit from the altcoin rally and recapture its previous all-time high. While some analysts foresee an ETH rally to $5,000 in the short term, others are predicting an ‘impulse breakout’ to $15,000 by the end of 2025.
Ether Price Movement
- Previous All-Time High: Recapturing possible
- Short-Term Prediction: Rally to $5,000
- Long-Term Prediction: Impulse breakout to $15,000
Why Bitcoin Could Explode After $100K
Bitcoin Could Explode After $100K—Here’s Why. Source: YouTube Magazine: How Shibtoshi gambled 37 ETH and became a Shiba Inu billionaire Explore more articles like this Subscribe to the Finance Redefined newsletter A weekly toolkit that breaks down the latest DeFi developments, offers sharp analysis, and uncovers new financial opportunities to help you make smart decisions with confidence. Delivered every Friday Subscribe By subscribing, you agree to our Terms of Services and Privacy Policy