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$7 million flow into AI tokens – The real deal or just hype?


  • AI tokens have grown by 24.44% year-to-date, but the impact was short-lived. 
  • Are they here to stay, or are they just another passing trend?

At the time of writing, Artificial Intelligence tokens led the gainers’ chart, with ARC and ai16z at the top. Following the AI Summit in France, over $7 million has flowed into these tokens, further building on Trump’s $500 billion AI investment.

Is 2025 the year of AI dominance in crypto?

Big money rolling in –  but there’s a catch

Despite AI tokens gaining momentum, their combined market cap accounts for just 1.5% of the $3.15 trillion crypto market – Leaving plenty of room for growth.

However, with rising real-world adoption, billion-dollar investments, Nvidia’s soaring valuation, and strong community support, the case for a bullish future in AI-driven crypto remains strong.

Take ai16z, for example – It’s up 30% this week, fueled by whale accumulation. In fact, just one investor snapped up 6.508 million ai16z tokens at $0.546, spending $3.56 million right after the AI Summit. 

AI tokensAI tokens

Source: TradingView

And yet, despite a 24.44% YTD surge in AI tokens’ combined market cap and a $500 billion investment in Artificial Intelligence, the rally fizzled out fast. Does this make AI tokens more “hype-driven” than a true store of value?

Future of AI in crypto

The Artificial Intelligence market, after soaring to a $70 billion peak in Q4 last year, has seen over half its gains wiped out. However, the real shock came in late January, when the DeepSeek controversy triggered a steep $3 billion loss in just one day.

Market capMarket cap

Source: CoinMarketCap

This highlights a bigger truth – The market isn’t immune to the same external forces that impact Bitcoin, with the AI industry now grappling with its own set of challenges.  

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Clearly, Artificial Intelligence isn’t ready to take over the crypto market just yet. A quick rebound to its peak is what it desperately needs.

Looking ahead, news of Artificial Intelligence-driven legislation could fuel a long-term surge, though a $100 billion market cap is still a distant dream. What this means is that these coins are perfect for short-term gains in the meantime.



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