AI Crypto: Recession and Optimistic Signals

The cryptocurrency market in general and AI Crypto in particular are going through a period of volatility, however many experts and investors believe that this is only a period of adjustment. While some AI projects face a drop in value, efforts to boost the Crypto AI ecosystem are still ongoing.

Gloomy Market, Crypto AI Is No Exception

Recently, the wave of Crypto AI in the cryptocurrency market has cooled considerably. Although it used to be one of the booming trends, there were even times when the market capitalization of AI tokens exceeded that of meme coins, at present, both the number of new projects and the market capitalization are showing a pullback.

Data from Cooki.fun clearly shows this through the sharp drop in the Crypto AI index in terms of total market capitalization. As of now, the index stands at just $6.52 billion, down 5 percent in just the last 24 hours.

The gloom didn't just stop there, the level of engagement with AI Agent projects also saw a significant drop in January 2025. The number of newly launched AI agent tokens also leveled off this week. If in November there were about 1,300 pairs of tokens related to AI agents on Virtuals, this month the number did not even reach 20.

Looking back at the past, the market capitalization of AI agents peaked at $20.45 billion on January 15, with an increase in the intensity of promotion for these projects since November 2024. After that peak period, however, the market saw a notable drop of nearly $14 billion.

Even the top 10 cryptocurrency AI agents recorded losses over the past seven days. FARTCOIN plunged 21%, AIXBT fell 10% and the largest token, VIRTUAL, lost 14% in value.

Positive Signals for Crypto AI Market

Although the market capitalization and the number of projects in the Crypto AI segment recorded a decline, efforts to boost this ecosystem are still ongoing. As evidenced by the fact that many projects are still quietly raising funds, developing products and finding new directions.

For example, the @henlokart project, after being mentioned by @HsakaTrades, a well-known cryptocurrency figure, in a post, the project's token price has seen positive changes.

Henlo Kart is a racing game built on the Farcaster Frame platform of the Warpcast app. The goal of the game is to train basic AIs through player interaction.

Another important factor, which plays a role in connecting and supporting the Crypto AI community, is the Virtuals Protocol. Virtuals Protocol is a protocol developed on layer 2 Base, which allows users to create and own AI Agents in entertainment and gaming.

A recent meeting between Virtuals and X representatives in New York is proof that the platform is working hard to learn and support AI Agent projects.

Virtuals also partners with @aicceleratedao, a non-profit organization dedicated to supporting AI applications, with the goal of providing financial and development support for potential projects.

The partner network (VPN) established by Virtuals is also a remarkable step forward, allowing holders of 2 million VIRTUALS tokens to be involved in the process of generating value from partner projects. The main goal of this network is to accelerate the development of AI Agent, opening up new opportunities for the field of AI Crypto.

In addition to strategic collaborations, the infrastructure of AI Crypto is also improving. Crossmint, the platform specializing in wallet and payment solutions for NFTs, has debut wallet for agents, which facilitates the management and interaction with AI Agents.

SNAI, the project in the field of AI for the semiconductor industry, continues to reap success when it is accepted by NVIDIA, the technology giant, into its startup program.

Not only that, connecting AI Agent with more than 7,000 applications on Zapier, the automation platform that helps connect users' applications such as Gmail, Slack, Facebook, Mailchimp... also opens up new possibilities, which simplifies and automates workflows.

Zerebro made an important mark when become. The first Agentic Protocol Story validator. Story Protocol is an EVM-compatible layer 1 blockchain, created with the goal of bringing IP onto the blockchain, making management and monetization easier. Zerebro's involvement in the authentication role marks a step forward in protecting AI-generated content.

In addition, Virtuals Den Ep2 (the Virtuals Protocol hackathon) is also preparing to launch, aiming to bring funding to early-stage projects. The Crypto AI community is also waiting for Sonic Hackathon, a programming competition focused on AI application development, with the participation of @danielesesta (founder of the HeyAnon project) as a judge.

Last, but not least, it is that access to AI Agents is becoming easier and easier.

Now, users can build agent @elizaOS using @AskVenice's API without the need for in-depth programming knowledge. This is a step forward, making it possible for more people to participate in the development and discovery of the potential of AI Agents.

The Crypto AI market is still facing many difficulties, but the positive signals above have proven that the sector has great growth potential. Support from platforms like Virtuals, infrastructure advances, and the introduction of development support tools are giving momentum to a brighter future for AI Crypto.