AI cryptocurrencies have dropped nearly 30% in value, but analysts forecast a potential recovery during the 2025 altcoin season.
Artificial intelligence (AI) cryptocurrencies have shed nearly one-third of their cumulative value, despite optimistic expectations of an incoming altcoin season driven by more crypto-friendly regulations during 2025.
The cumulative 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, CoinMarketCap data shows.
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.
The near 30% drop in AI-based cryptos occurred during a wider crypto market downtrend, which saw Bitcoin BTC$94,493 price experience an over 14% correction from its all-time high of above $108,000 on Dec. 17, .
Increasingly more analysts are expecting an incoming altcoin season during 2025, which could see Bitcoin profits flow into smaller cryptocurrencies, including AI tokens.
Can altseason lift AI cryptos in 2025?
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.
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 X post:
“A few more weeks before mega altseason…”
In crypto trading, technical traders use price fractal patterns to identify key support and resistance levels and potential trend reversals based on historical data.
Ether ETH$3,357.88 price could also benefit from the altcoin rally and recapture its previous all-time high.
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.
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