Artificial Intelligence Coins Plunge as DeepSeek Rises
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Artificial Intelligence cryptos are facing significant pressure, with their total market cap dropping 10% in the past 24 hours to $37.4 billion. Four of the top five AI coins have suffered heavy losses, with RENDER and VIRTUAL both down over 13%, and FET and INJ dropping 9% and 11%, respectively. This sharp decline comes amid the rise of DeepSeek, a low-cost AI model that has sparked concerns about the viability of current AI projects. As doubts grow about the future of AI applications, even the largest players in the sector, including NVIDIA and OpenAI, are facing scrutiny. Artificial Intelligence Coins Market Cap Dropped 10% In 24 Hours DeepSeek is causing major disruption across the AI ecosystem, including artificial intelligence cryptos. Developed by High-Flyer, a Chinese quant trading company, the model cost just $6 million — significantly less than the billions spent by competitors like OpenAI and Meta on their LLM models. This cost-efficient breakthrough has sparked widespread concern, challenging the notion that heavy funding guarantees market dominance in the AI space. AI Crypto Tokens Market Cap. Source: CoinGecko The ripple effects of DeepSeek’s emergence are being felt across the industry, with the stockts of major AI companies like NVIDIA, Microsoft, and Meta experiencing pre-market losses. NVIDIA, for instance, is down 11.46% pre-market, highlighting the uncertainty caused by this development. The disruption has also hit AI-related cryptocurrencies, with their total market cap dropping 10.2% in the past 24 hours to $37.4 billion. Major AI Coins Are Down Four of the top five AI coins are facing significant losses over the last 24 hours, with declines of at least 9%. The only exception is TAO, which has remained relatively stable, showing roughly 0% price change during this period. This widespread drop shows the growing uncertainty in the AI crypto market following the disruptive…
Filed under: News - @ January 28, 2025 1:16 am