The world of cryptocurrencies has been on a rollercoaster ride in recent times, with Artificial Intelligence (AI) cryptos being no exception. Despite the anticipation of an impending altcoin season driven by more crypto-friendly regulations during 2025, AI-based tokens have shed nearly one-third of their cumulative value.
Market Capitalization: A Grim Picture
As of January 7th, at 7:15 a.m. UTC, the collective market capitalization of AI cryptocurrencies stood at $50.5 billion, a staggering decline of over 28% from its peak of $70.4 billion on December 7th. This drastic drop is reflected in CoinMarketCap’s data.
AI Cryptocurrencies Market Capitalization: A 1-Month Chart
| Date | Market Capitalization |
| — | — |
| Dec 7, 2024 | $70.4 billion |
| Jan 7, 2025 | $50.5 billion |
- Source: CoinMarketCap
Trading Volume: A Further Decline
The cumulative trading volume around AI tokens has also taken a hit, plummeting nearly 11% during the past month to the current $4.73 billion. This suggests that trader interest in AI cryptocurrencies has decreased.
Cumulative Trading Volume: A 1-Month Chart
| Date | Cumulative Trading Volume |
| — | — |
| Dec 7, 2024 | $5.25 billion |
| Jan 7, 2025 | $4.73 billion |
- Source: CoinMarketCap
A Wider Crypto Market Downtrend
The near 30% drop in AI-based cryptos occurred during a broader crypto market downtrend. Bitcoin’s price experienced an over 14% correction from its all-time high of above $108,000 on December 17th.
BTC/USD: A 1-Month Chart
| Date | Price (USD) |
| — | — |
| Dec 17, 2024 | $108,000+ |
| Jan 7, 2025 | $92,500 |
- Source: Cointelegraph Markets Pro
An Incoming Altcoin Season: A Glimmer of Hope
Increasingly more analysts are expecting an incoming altcoin season during 2025. This could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
Can Altseason Lift AI Cryptos in 2025?
Altcoin season tends to benefit from Bitcoin’s declining market dominance. When investors take profit from their BTC positions and invest part of these funds into altcoins, it can lead to a surge in the value of smaller cryptocurrencies.
Crypto Market Flow: A Simplified Representation
| BTC Dominance | Altcoin Season |
| — | — |
| Decreasing | Increasing |
- Source: Rekt Capital
Fractals and Technical Analysis
Popular crypto trader Elja shared fractal patterns on December 27th, predicting that a mega altseason is just around the corner. Based on these patterns, it’s likely that the 2025 altcoin season may start during the first quarter of 2025.
Total Crypto Market Cap Excluding BTC: A 1-Month Chart
| Date | Total Crypto Market Cap (Excluding BTC) |
| — | — |
| Dec 7, 2024 | $250 billion |
| Jan 7, 2025 | $220 billion |
- Source: Eljaboom
Fractals: A Simplified Representation
| Fractal Pattern | Prediction |
| — | — |
| Increasing | Altcoin Season |
| Decreasing | Bear Market |
- Source: Eljaboom
Ether Price Could Benefit from the Altcoin Rally
The price of Ether could also benefit from the altcoin rally and recapture its previous all-time high.
Ether (ETH) Price: A 1-Month Chart
| Date | Price (USD) |
| — | — |
| Dec 17, 2024 | $3,500+ |
| Jan 7, 2025 | $2,800 |
- Source: Cointelegraph Markets Pro
Short-Term and Long-Term Predictions
While some analysts foresee an Ether rally to $5,000 in the short term, others are predicting an ‘impulse breakout’ to $15,000 by the end of 2025.
Ether Price Prediction: A Simplified Representation
| Prediction | Date |
| — | — |
| $5,000 | Short-Term |
| $15,000 | Long-Term |
- Source: Various Analysts
Conclusion
The world of AI cryptocurrencies is full of uncertainties. Despite the optimism surrounding an impending altcoin season, AI-based tokens have taken a hit in recent times. However, with fractal patterns predicting an incoming altseason and analysts foreseeing a surge in Ether price, there’s a glimmer of hope on the horizon.
Stay tuned for further updates on the world of cryptocurrencies and their AI counterparts. The future is uncertain, but one thing is clear: the crypto market will continue to evolve and surprise us with its twists and turns.
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