AI Tokens Experience 90% Drop as Market Struggles

The AI agent token market is undergoing significant turmoil, with overall market capitalization plummeting by 13% in just 24 hours, now at approximately $6.42 billion. Major tokens, including AI16Z, Fartcoin, and VIRTUAL, have lost between 40% to 90% of their values since January, reflecting a broader trend of investor withdrawal and market correction. Reports indicate that a staggering 88% of AI agent tokens fail to survive beyond 17 days, with 75% of traders experiencing losses due to the high volatility and speculative nature of the market. The decline has been exacerbated by external factors such as competition from other token launches, notably Trump's memecoin, which has diverted liquidity away from AI tokens. Despite these challenges, some emerging projects like Dawgz AI are attempting to differentiate themselves with tangible technology and staking rewards, aiming to attract investors amidst the overall downturn. Analysts warn that without significant catalysts, the AI token sector may continue to struggle in regaining momentum.