The rise of AI coins: Why has $FET become the market focus?
On March 23, 2025, the cryptocurrency market saw a glimmer of brightness amidst cautious sentiment: the AI coin sector surged, with $FET (Fetch.ai) gaining 10% in a single day, and trading volume skyrocketed, leading the mainstream coins. Meanwhile, the price of $BTC fluctuated around $84,000, and although $ETH rose to $2,200 due to the Layer 2 craze, its increase was only 3-5%. Why were AI coins able to stand out in a sluggish market? This article will analyze the deep reasons behind their leadership from four dimensions: technological narrative, market sentiment, fund flow, and external catalysts.
1. The strong return of technological narrative
The core appeal of AI coins lies in their technological narrative. At the beginning of 2023, the explosive popularity of ChatGPT brought AI from science fiction into reality, while the combination of blockchain and AI injected new imaginative space into the crypto market. Taking $FET as an example, it is positioned as a decentralized AI platform that utilizes Autonomous Agents to optimize real-world scenarios such as supply chain and energy management. According to data from Fetch.ai's official website, its AI solutions have collaborated with companies like Bosch, claiming to enhance supply chain efficiency by 20%.
By 2025, as application scenarios for AI technology expand (such as intelligent transportation and decentralized data markets), investors' confidence in AI coins is significantly enhanced. Compared to the 'digital gold' positioning of $BTC or the smart contract ecosystem of $ETH, AI coins provide a more futuristic 'productivity tool' label. This differentiation in technological narrative allows AI coins like $FET to attract funding attention even during market adjustments.
2. The sector rotation effect of market sentiment
Current market sentiment is cautious, with the Fear & Greed Index hovering at 32, and $BTC repeatedly testing support around the $80K level. However, funds have not completely withdrawn but are showing signs of sector rotation. The leadership of AI coins is a manifestation of this effect.
According to CoinMarketCap data, the total market capitalization of AI and big data tokens grew by 131% from June to November 2024, reaching $42.1 billion, while $FET's market capitalization has surpassed $2 billion, with daily trading volume approaching $200 million. This growth is not an isolated phenomenon but a result of the market chasing new narratives. Compared to the short-term speculation of meme coins (such as $GOAT's short-term surge to a $1.1 billion market cap), the upward trend of AI coins is more sustainable due to the technological and application support behind them. When investors look for high-growth potential sectors during $BTC's sideways movement, AI coins naturally become the first choice.
3. Institutional endorsement of fund flow
The rise of AI coins is driven by funds, especially the favor of institutional investors. In 2024, Bittensor ($TAO) received hundreds of millions in support from venture capitalists like Polychain and Digital Currency Group, while $FET attracted more institutional funds due to its strategic layout in the Artificial Superintelligence Alliance (in collaboration with SingularityNET and Ocean Protocol).
X platform user @feixiaohaocom mentioned that the AI coin craze echoes the trend of NVIDIA's Q1 revenue for fiscal year 2024 soaring by 262% (reaching $26 billion). The surge in demand for AI chips indirectly increases the valuation of AI blockchain projects. Furthermore, Strategy founder Michael Saylor released a Bitcoin Tracker chart on March 23, hinting at increasing his $BTC holdings, which may boost overall market confidence in technology-driven crypto assets, benefiting AI coins.
4. The cumulative effect of external catalysts
Recent hot events have provided external impetus for the rise of AI coins:
Trump's policy expectations: After the White House crypto summit (March 7), Trump will speak at the digital asset summit on March 24, with market expectations that his proposed easing policies will benefit innovative crypto projects, with AI coins being the most affected.
Technical breakthrough exposure: The $FET team recently announced a collaboration with Stability to enhance AI training capabilities (Web ID: 5), sparking community discussions and driving price increases.
Market competition intensifies: AI coins like $RNDR are also on the rise, and internal competition within the sector has stimulated overall activity.
5. Concerns and outlook behind the data
Although the leading momentum of AI coins is strong, the risks cannot be ignored. The current price of $FET (hypothetically $0.80) is still below its peak at the beginning of the year, and short-term gains may trigger profit-taking. In addition, while the AI narrative has potential, actual application implementation still requires time for validation. If technology does not meet expectations or regulations tighten, the craze may cool down.
Looking ahead, if $FET breaks through $1 and stabilizes, combined with institutional funding and favorable policies, its market capitalization is expected to challenge $5 billion, and even push towards the $5 price point (Web ID: 12). However, investors need to pay attention to the $BTC trend; if it falls below $80K, AI coins may also retrace with the market.
Conclusion: Is the AI coin craze a flash in the pan or a new trend?
The leadership of AI coins is both a recognition of technological innovation and a result of market fund rotation. From Saylor's $BTC hints to Trump's policy expectations, and to $FET's own ecological progress, a combination of factors has ignited this wave of enthusiasm. Do you think AI coins can maintain their lead, or is it just short-term speculation? Feel free to share your thoughts in the comments; I will reply to each one!