Crypto AI Agents Turn Bearish as Market Cap Drops 15% In 24 Hours

Crypto AI Agents were one of the most talked-about narratives in the crypto space, with projects like VIRTUAL and AI16Z reaching record valuations. However, the sector has struggled since mid-January, as sentiment shifted and DeepSeek’s influence further accelerated the ongoing correction.

As a result, market caps have plummeted, and investors are now reassessing the sustainability of AI-driven blockchain projects. While a rebound is still possible, the entire crypto AI sector needs renewed confidence to regain momentum.

Crypto AI Agents Coins Market Cap Is Now At $8 Billion

Crypto AI Agents were one of the hottest narratives in recent months, with tokens like VIRTUAL and AI16Z reaching record highs. The growing hype around AI-driven blockchain projects pushed their market caps to new levels, attracting strong investor interest.

However, the sector has faced heavy losses since January 15, especially after DeepSeek started affecting the broader artificial intelligence market, which impacted a correction that was already taking place even more. This shift in sentiment triggered a sell-off, wiping out a significant portion of recent gains.

In the last 24 hours, the Crypto AI Agents sector has been down 15%, with its market cap now at $8 billion. All 10 top tokens in the sector have declined, with AI16Z dropping 17.9% in the past day and 46.7% over the past month. The sell-off shows no signs of slowing down yet.

VIRTUAL Is Reaching Its Lowest Levels In Months

VIRTUAL is a prime example of the broader correction in crypto AI agent tokens. At its peak, on January 2, it briefly became the largest AI coin, surpassing TAO and RENDER, with a market cap of over $5 billion.

Launched on Base, VIRTUAL provides an easy way for users to deploy AI agents on-chain. As a result, the project gained massive hype, driving its price up by 4,236% between October 2024 and January 2025.

However, in recent weeks, VIRTUAL has faced a sharp decline, with its price dropping over 61% in the last 30 days, bringing its market cap down to around $1 billion, the lowest since November 2024.

Will Crypto AI Agents Recover Their Good Momentum?

AI recently dominated crypto mindshare, reaching over 70% a few weeks ago. However, its influence has sharply declined to just 32%, with Memes, DeFi, and ETFs now closing in as the second, third, and fourth most discussed sectors.

For AI agent tokens to regain momentum, the entire crypto AI sector needs a strong rebound. Meanwhile, many investors are questioning valuations and reassessing their positions, especially after DeepSeek’s impact on the market.

Without renewed confidence in AI-driven projects, recovery remains uncertain. A broader shift in sentiment and fresh catalysts will be necessary for AI coins to start rising again.