AI cryptocurrencies have seen a significant decline, dropping nearly 30% in value, with their cumulative market capitalization falling to $50.5 billion from a peak of $70.4 billion on December 7. This decrease, recorded as of December 28, 2024, occurred alongside a broader downturn in the crypto market, where Bitcoin's price corrected over 14% from its all-time high of above $108,000. Cumulative trading volume for AI tokens also decreased by nearly 11%, indicating reduced trader interest. Despite this downturn, many analysts forecast a potential recovery during the 2025 altcoin season, anticipated to start in the first quarter, fueled by shifts in market dynamics as profits from Bitcoin may flow into smaller cryptocurrencies, including AI tokens. This season typically benefits from Bitcoin's declining dominance, as investors diversify into altcoins. The optimism surrounding an altcoin rally is buoyed by positive sentiment regarding upcoming crypto-friendly regulations.

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