Despite optimistic expectations for the upcoming altcoin season due to more cryptocurrency-friendly regulations in 2025, artificial intelligence (AI) cryptocurrencies have lost nearly a third of their cumulative value.
According to CoinMarketCap data, the AI cryptocurrency’s cumulative market capitalization was $50.5 billion as of 7:15 a.m. UTC, down more than 28% from its peak of $70.4 billion on December 7.
AI cryptocurrency market capitalization. This is a 1 month chart. Source: CoinMarketCap
Cumulative trading volume led by AI tokens has also decreased by about 11% over the past month, currently at $4.73 billion, suggesting a decline in trader interest in AI cryptocurrencies.
According to data from Cointelegraph, the AI-based cryptocurrency’s nearly 30% drop occurred during a broader cryptocurrency market downturn, which caused Bitcoin (BTC) price to correct more than 14% from its all-time high of $108,000 on December 17. . Market Pro.
BTC/USD, 1-month chart. Source: Cointelegraph
A growing number of analysts are predicting that altcoin season will begin in 2025, which could lead to Bitcoin gains flowing into smaller cryptocurrencies, including AI tokens.
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Can Altseason Lift AI Cryptocurrency in 2025?
Altcoin seasons, or altseasons, tend to benefit from Bitcoin’s declining market dominance. This often means that investors take profits from their BTC positions and invest a portion of these funds into altcoins.
Cryptocurrency market trends. source: Recht Capital
The 2025 altcoin season could begin in the first quarter of 2025, based on a fractal pattern shared by popular cryptocurrency trader Elja, who wrote in an X post on December 27.
“There are a few weeks left in the mega alt season… ”
Total cryptocurrency market capitalization excluding BTC. This is a 1 month chart. Fractal. Source: Elsaboom
In cryptocurrency trading, technical traders use price fractal patterns to identify key support and resistance levels and potential trend reversals based on historical data.
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Ethereum (ETH) price could also benefit from the altcoin rally and regain its previous all-time highs.
Some analysts expect Ethereum to rise to $5,000 in the near term, while others predict an “impulse breakout” to $15,000 by the end of 2025.
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