Cryptocurrencies linked to artificial intelligence (AI) have seen a major drop in value recently. Market data shows their total worth has fallen by 28%, shrinking from $70.4 billion to $50.5 billion. This comes at a time when interest in AI-based cryptocurrencies seems to be fading. Despite this downturn, experts believe a big rebound could happen in 2025, during what’s often called “altcoin season.”

The decline in these cryptocurrencies also reflects a broader slowdown in the crypto market. For instance, Bitcoin, which had reached an all-time high of $108,000, has since lost 14% of its value. Additionally, trading activity for AI-focused crypto assets has dropped too. Their monthly trading volume is down 11%, now sitting at $4.73 billion. This suggests that fewer people are buying and selling these tokens right now.

But not all hope is lost. Crypto analysts are optimistic about the future. Many expect smaller cryptocurrencies (known as altcoins) to gain momentum in 2025 as profits from Bitcoin potentially flow into these other assets. A well-known crypto investor on the X platform recently predicted a “mega altcoin season” might kick off in early 2025.

Ethereum, one of the biggest altcoins, is also expected to perform well. Experts think it could hit $5,000 soon and possibly climb to $15,000 by the end of 2025. These predictions are based on past trends and technical analysis, giving investors something to look forward to even as the market faces challenges today.