AI Tokens Shed 75% in a Year, Wiping Out $53B in Market Value: Report

AI-focused crypto tokens have experienced a dramatic and rapid correction, losing roughly 75% of their value year over year and erasing about $53 billion from the sector's market capitalization, according to data compiled by Company CryptoPresales.com. This selloff accelerated into the year-end, with December alone accounting for nearly $10 billion in losses, and left the combined AI and big data token market down to approximately $16.8 billion at the time of reporting.

The collapse represents a reversal from the explosive gains that characterized 2023 and parts of 2024, when investors poured capital into projects promising on-chain machine learning, data infrastructure and blockchain-based compute. After peaking at an all-time high market cap of $44.9 billion in early 2024, the sector saw valuations cut significantly by mid-August amid concerns over geopolitical tensions, expanded US export restrictions on AI chips to China, and widespread profit-taking.

Following a short-lived rebound in late 2024 driven by renewed interest in utility-focused AI blockchain projects, momentum evaporated in 2025. Traders rotated away from smaller, higher-risk tokens as liquidity thinned and dozens of new token launches diluted demand. Data from Company CoinMarketCap shows the sector lost about 63% of its value (~$44 billion) by April, and although there were modest recoveries in the middle quarters, prices never returned to prior highs.

The downturn deepened in Q4, with the AI token market shedding roughly $4 billion in November followed by a $10 billion collapse in December. The damage was broad-based: eight of the top ten AI and big data tokens by market cap posted losses exceeding 70% year over year. High-profile projects such as Company Artificial Superintelligence Alliance, Company Render and Company The Graph each suffered steep declines, with some falling more than 80%. Even breakout performers from 2024 — for example Company Virtuals Protocol, which surged in the previous cycle — have given back the majority of their gains.

Key drivers behind the correction include the fading hype cycle, thinner market liquidity, macroeconomic pressures and regulatory overhangs. The pipeline of new token launches has also amplified selling pressure, making smaller projects particularly vulnerable during broader market pullbacks. Market observers and traders noted that speculative capital often left the sector as soon as on-chain utility and sustainable revenue models failed to materialize quickly enough.

Industry data sources and reporting hubs have documented the shift. Company CryptoPresales.com compiled much of the loss estimates, while Company CoinMarketCap provided market-cap breakdowns and token performance metrics. The original reporting appeared on Company Cryptonews, which highlighted the suddenness and scale of the correction.

Outlook: For traders and investors, the correction shifts the risk-reward calculus. Some projects with clear on-chain utility, real revenue models and stronger liquidity may recover market share over time, while speculative and hype-driven tokens could remain under pressure. Risk management, due diligence and selection bias toward projects with demonstrable fundamentals will likely be central to any rebound strategy.

Implication for markets: The AI token selloff is a reminder that thematic rallies driven by narrative and expectations can reverse sharply when liquidity tightens and hype cools. Market participants should expect elevated volatility in the near term and prioritize capital allocation to projects with robust tokenomics and real-world adoption signals.