The cryptocurrency market suffered a sharp decline as artificial intelligence and big data-related tokens showed a decline in market capitalization of $4.69 billion over three days.
The market, which was $38.82 billion on September 30, fell to $34.13 billion on October 3, raising questions about the ‘UPtober’ trend in which investors expected a market recovery.
Despite the historical trend of October being a favorable month for traders, this year is expected to be ‘Octo-bear’ rather than ‘UPtober’.
This chart shows the market capitalization and trading volume of AI and big data tokens. Source: CoinMarketCap
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Underwater AI and Big Data Tokens
Among the major AI and big data tokens, Near Protocol (NEAR) has seen the steepest decline, down 14.88% over the past seven days. At the time of writing, the token price was $4.61.
Other top-performing tokens such as Bitensor (TAO) and Internet Computer (ICP) also experienced significant price declines, down 9.37% and 13.35%, respectively, over the same period.
This trend has impacted the broader AI and Big Data market, with tokens such as Render (RNDR) down 13.64% and Artificial Superintelligence Alliance (FET) down 16.68%.
Best coin performance for AI and big data tokens. Source: CoinMarketCap
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UPtober failed to send
Historically, October has been a time of solid gains and market stability, and many expected Bitcoin (BTC) and altcoins to show upward momentum throughout the month.
But in 2024, nearly $5 billion was wiped from AI and big data token market cap in just three days in October.
The broader cryptocurrency market has trended downward due to geopolitical factors, including ongoing conflict in the Middle East, regulatory issues and macroeconomic concerns.
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It’s not that bad after all
Despite the economic downturn, AI tokens are still performing much better than they were in July, when their total market capitalization was around $20 billion.
Considering the change in pace from three months ago, the market for AI and big data tokens could increase by more than $13 billion, essentially negating October’s market cap loss.
Although BTC’s long-term trend for the fourth quarter and early 2025 appears optimistic, recent signs indicate that there may be short-term volatility in October.
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