AI Crypto Tokens Lag as Bitcoin Gains Momentum
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The Key Takeaways:
- AI crypto tokens like NEAR and Fetch.AI show weak performance in 2025 despite positive sentiment surrounding Nvidia.
- Google search queries for these tokens are significantly declining.
- Many traders have shifted their focus to more volatile AI agent tokens.
- Nvidia announced new hardware that could drive advancements in the AI sector.
The Current State of AI Crypto Tokens
AI crypto tokens like NEAR and Fetch.AI, which posted impressive gains in 2024, are struggling with a prolonged phase of weakness in 2025. Despite the positive sentiment sparked by Nvidia’s annual conference, these tokens have failed to replicate their earlier success. While Nvidia’s stock rose by 15%, NEAR and Fetch.AI recorded losses of 8% and 9%, respectively, within 24 hours.
Why Are AI Tokens Losing Appeal?
A primary reason for the weak performance is the shift among traders toward so-called AI agent tokens. These tokens resemble memecoins and are known for their high volatility and potential for extreme gains. However, they also carry a high risk of significant losses. In comparison, traditional AI tokens are harder to move due to their larger market capitalization.
Additionally, an analysis of Google search trends shows that interest in tokens like NEAR and Fetch.AI has significantly declined. Since March 2024, search queries have dropped by 47% and 84%, respectively. This indicates that overall attention toward this sector has waned considerably.
The Role of Speculation in the Crypto Market
Crypto markets are well-known for their speculative nature. Sectors that gain popularity quickly are often subject to the same dynamics: a rapid rise followed by an equally rapid decline. The AI token boom in 2024 was heavily driven by speculation. Many investors believed that AI would be the dominant narrative of the next crypto bull market. Instead, Bitcoin took center stage, supported by billions in ETF investments and political events such as Donald Trump’s election victory.
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Technological Advancements by Nvidia
Despite the weakness of AI crypto tokens, Nvidia remains a key player in the AI space. At the conference, a new mini-supercomputer called “Digits” was unveiled, which will be available starting May 2025 for $3,000 USD. Innovations like these could have a positive long-term impact on the AI crypto sector by advancing the development and adoption of AI technologies.
Our Assessment
The current weakness of AI crypto tokens highlights how heavily this market is influenced by speculative movements and short-term trends. While AI agent tokens might be appealing to traders in the short term, it remains to be seen whether traditional AI tokens will gain significance in the long run. Technological advancements led by companies like Nvidia could play a crucial role. For investors, it is essential to carefully weigh the risks and opportunities in this volatile market.
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