The Artificial Superintelligence Alliance (FET) price rose for four consecutive weeks, reaching a high of $0.5730, its highest swing since March 26. The Render (RNDR) token jumped to $4.32, also up by double digits from the year-to-date low. Worldcoin (WLD) price rose by 7%, while Tars AI jumped by about 60%.
The total market cap of all AI tokens tracked by CoinGecko has jumped by 5.6% in the last 24 hours to $22.20 billion. This surge followed a CoinGecko report showing that AI was one of the most popular themes in the crypto market, with the Artificial Intelligence theme having a 14.4% share, and AI agents having 10.1%. Combined, this figure was higher than the meme coin interest of 16.5%.
However, there are signs that the AI theme is losing traction in both stock and crypto markets. Popular AI stocks like NVIDIA, AMD, SoundHound, and Bigbear AI have all plunged by over 20% from their peak levels. Similarly, AI tokens like Render, AIC, TAI, WLD, and FET have all dropped by over 50% from their highest points this year, mirroring the performance of the broader crypto market.
Concerns are growing that the AI bubble that has been inflating over the past few years may be about to deflate. One possible indicator is that Microsoft has paused its data center expansion in places like the United States, India, and Indonesia. Another concern is the oversupply of AI models, with China having numerous models alongside popular US AI models like Claude, ChatGPT, and Grok.
It remains uncertain whether AI tokens like AI Companions, Tars AI, Worldcoin, and FET will continue their rise, as this rebound may be part of a dead cat bounce. A sustained recovery will depend on the performance of the crypto market, particularly a strong Bitcoin (BTC) rebound, which could indicate more gains for most altcoins.
By techgeekwire
