AI Crypto Tokens Experience Severe Market Downturn Across 2025, Erasing Over $50 Billion in Sector Value

The AI crypto tokens sector faced an unprecedented correction throughout 2025, with data compiled by CryptoNews revealing a staggering year-over-year decline of approximately 75%. This market turmoil resulted in roughly $53 billion being wiped from the collective valuation of AI-focused digital assets, marking one of the most significant pullbacks in the sector’s history.

The bearish momentum in AI crypto tokens intensified dramatically as the year progressed, with accelerating losses concentrated in the final quarter. November witnessed a $4 billion outflow from the sector’s market capitalization, but the situation deteriorated further in December as investors fled the space, with a sharp $10 billion decline recorded for that month alone.

The Scope of Losses Across Leading AI Token Projects

When examining the performance of major players in the AI crypto tokens landscape, the damage becomes even more apparent. Among the top ten AI-focused tokens by market capitalization, eight projects experienced losses exceeding 70% over the twelve-month period. This widespread decline demonstrated that the downturn was not isolated to struggling projects but rather affected even the most established players in this emerging sector.

Specific projects saw particularly severe corrections. The Artificial Superintelligence Alliance led the declines, plummeting 84% from its 2025 highs. Render and The Graph both suffered 82% losses, erasing months of accumulated gains. The Virtuals Protocol, which had delivered an extraordinary 3,500% rally in the prior year, retreated 73% as profit-taking overwhelmed buying interest. Meanwhile, established blockchain projects with AI components—including Injective, Filecoin, Internet Computer, and NEAR Protocol—all experienced significant double-digit percentage declines throughout the year.

Market Implications for the AI Token Sector

The 75% retreat in AI crypto tokens highlights the inherent volatility within speculative technology-focused digital assets. The month-by-month acceleration of losses suggests that bearish sentiment continued building throughout late 2025, culminating in December’s particularly harsh selloff. This pattern reflects broader market cycles where initial enthusiasm gives way to profit-taking and skepticism about long-term viability.