Crypto AI Tokens Plummet: $10B Lost in 24 Hours Amid U.S. Tariffs and Market Chaos
The cryptocurrency market is reeling from its worst week in years, with AI-focused tokens bearing the brunt of a historic meltdown. A brutal combination of U.S. tariff hikes, excessive leverage, and panic selling has erased $10 billion from AI token market caps in 24 hours—surpassing losses seen during the COVID and FTX collapses.
Market Overview: A “Catastrophic” Week for Crypto
The fallout has been staggering:
- Bitcoin (BTC): Dipped 5.7% to $95,000, now commanding 60.7% market dominance—its highest since March 2021.
- Ethereum (ETH): Crashed 18.3%, while altcoins fell 20.4% on average.
- Liquidations: Over $10 billion in positions wiped out, per Bybit co-founder Ben Zhou.
The sell-off intensified after the U.S. imposed new tariffs on Canada and Mexico, sparking fears of a broader economic slowdown. “This isn’t just a correction—it’s a systemic shock,” said one trader.
AI Tokens Hit Hardest: Sector Crashes to 2024 Lows
The AI token sector, once a beacon of innovation, nosedived 24.5% weekly, erasing gains back to November 2024 levels. Only three top-100 AI tokens escaped the bloodbath:
- DeXe (DEXE): +7.1%
- AI Companions (AIC): +194.9% (an outlier in a sea of red).
Worst Performers:
- Venice Token (VVV): -78%
- io.net (IO): -46.3%
- AIOZ Network (AIOZ): -40.4%
Even AI subsectors like AI Agents collapsed, with tokens like GRIFFAIN (-58.9%) and Zerebro (-47.3%) plummeting.
Regulatory Bombshells and AI Developments
Amid the chaos, critical updates emerged:
- EU Enforces Strict AI Act: Violators face fines up to €35 million ($36M) for misuse of high-risk AI, including facial recognition.
- OpenAI’s New Tools: Launched Deep Research Agent for AGI development and o3-mini, a STEM-optimized model.
- Perplexity’s Crypto Plans: CEO hinted at crypto integration, though details remain scarce.
Meanwhile, decentralized organization ai16z rebranded to ElizaOS to avoid confusion with VC giant Andreessen Horowitz (A16z).
Investor Dilemma: Bottom or Breakdown?
The Crypto Fear & Greed Index slid into “fear” territory for the first time since October 2024. Traders now debate whether this is a buying opportunity or the start of a prolonged altcoin winter.
Analyst Take: “AI tokens are trading at 2023 prices. If you believe in the tech, this is a fire sale,” noted CryptoBriefing. “But with tariffs and leverage still in play, caution is key.”
Final Word
As Bitcoin’s dominance soars, AI tokens face a pivotal moment. While regulatory crackdowns and macroeconomic risks loom, breakthroughs like OpenAI’s tools suggest long-term potential. For now, investors must navigate a market where panic and opportunity collide.
Stay updated with real-time AI token prices and news on CoinMarketCap.
