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.
Top Crypto AI Agents Coins and their Price Change. Source: CoinGecko.
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.
VIRTUAL Market Cap. Source: CoinGecko.
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.
Crypto Sectors Mindshare. Source: Kaito and X.
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.