AI Token Market Collapse Amid Booming Web3 Ecosystem: Key Insights
AI Token Market Collapse Amid Booming Web3 Ecosystem – Over the past 30 days, the AI token market capitalization has plunged by 29.33%, falling to $26.72 billion. Notably, Bittensor (TAO) recorded a 29% drop in price alongside a 4.24% decline in market cap and a 14% decrease in trading volume, signaling intense selling pressure. Similarly, Near Protocol (NEAR) shed 27.12% in value with its market cap down 4.45%. Other AI-focused tokens like Artificial Superintelligence (FET) and Render (RNDR) declined by 25.68% and 32.8% respectively, indicating a widespread shift in investor sentiment within the AI crypto niche.
Web3 Adoption Continues to Surge
Contrasting the AI token slump, Web3 adoption continues to expand rapidly. The Web3 blockchain market is projected to grow from $7.23 billion in 2025 to $42.29 billion by 2030, according to Mordor Intelligence. This growth is fueled by increasing demand for decentralized technologies, particularly in emerging markets. Additionally, the global number of crypto users surged to 659 million in 2024, marking a 14% year-over-year increase as reported by Triple-A. Despite these gains, the total crypto asset market value currently stands at $3.2 trillion, down from an all-time high of $3.8 trillion reached in December 2024.
Decoupling Between AI Tokens and Nvidia Stock
While Nvidia’s stock rallied by 6.66% over five days closing at $155.09 on June 27, with a massive $3.78 trillion market cap, AI tokens failed to follow suit. Historically, AI-related equities like Nvidia tended to lift AI token prices; however, this correlation now appears broken. AI tokens are increasingly moving in tandem with broader altcoin market trends rather than Nvidia’s bullish momentum, reflecting an evolving investor approach. This growing decoupling highlights how AI crypto assets may be influenced more by overall crypto market dynamics than real-world AI industry leaders.
Key Takeaways:
- AI token market cap down 29.33% in 30 days to $26.72B
- Web3 blockchain market projected to reach $42.29B by 2030
- Crypto users hit 659 million in 2024, up 14% YoY
- Nvidia stock up 6.66%, but AI tokens show no correlation
- AI tokens now track altcoin momentum over equity markets
This divergence signals a significant market shift as AI tokens carve out an independent path within the volatile crypto landscape.
Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrencies and stocks, particularly in micro-cap companies, are subject to significant volatility and risk. Please conduct thorough research before making any investment decisions.
