Crypto AI Sector Turns Bearish as Market Cap Drops 15% in 24 Hours

Crypto AI agents were one of the most talked-about stories in the crypto space, with projects like VIRTUAL, $CGPT , and AI16Z hitting record valuations.

However, the sector has struggled since mid-January as sentiment changed and DeepSeek’s influence further accelerated the ongoing correction.

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

The sector has faced heavy losses since January 15, especially after DeepSeek started affecting the broader AI market, further impacting an already ongoing correction. This shift in sentiment triggered a sell-off, wiping out a significant portion of recent gains.

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

For #ArtificialInteligence Agents tokens to regain their momentum, the entire crypto AI sector needs a strong rally. Meanwhile, many investors are questioning valuations and re-evaluating their positions, especially after DeepSeek’s impact on the market.

Without renewed confidence in AI-powered projects, recovery remains uncertain. A broader shift in sentiment and new catalysts will be needed for AI coins to start climbing again.