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Cryptocurrency News Articles

Crypto AI Agents Market Cap Is Now At $8B After DeepSeek Influenced the Ongoing Correction

Feb 02, 2025 at 07:16 pm

Crypto AI Agents were one of the hottest narratives in recent months, with tokens like VIRTUAL and AI16Z reaching record highs.

Crypto AI Agents Market Cap Is Now At $8B After DeepSeek Influenced the Ongoing Correction

Crypto AI Agents, a new class of tokens designed to integrate artificial intelligence with blockchain technology, have experienced a rapid decline in market cap, falling from a peak of $20 billion to just $8 billion.

This downturn is largely attributed to a shift in investor sentiment and the influence of DeepSeek, a powerful AI system that has been affecting the broader artificial intelligence market.

Despite countering a correction that was already underway, DeepSeek’s influence on crypto AI agents has been minimal. The sell-off in the sector began on January 15, as a broader market correction kicked in following a period of parabolic gains.

During this time, crypto AI agents enjoyed a massive rally, with tokens like VIRTUAL, AI16Z, and TAO surging by over 100X, 50X, and 20X, respectively, in just a few months.

However, the unsustainable nature of such gains and a shift in investor attention toward other narratives, such as Memes and DeFi, led to a sell-off in crypto AI agents.

As a result, tokens like VIRTUAL, which at one point surged to become the largest AI coin, have now lost over 60% of their value in the last 30 days.

Meanwhile, AI16Z, the second-largest token in the sector, has dropped by 17.9% in the past 24 hours and 46.7% over the last month.

Overall, the sell-off in the crypto AI agents sector shows no signs of slowing down yet.

With investors reassessing the sustainability of AI-driven blockchain projects and shifting their attention elsewhere, a recovery in the sector will depend on a broader shift in sentiment and fresh catalysts.

Original source:beincrypto

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Other articles published on Jul 31, 2026