AI tokens are struggling despite positive sentiment around Nvidia's annual conference. Tokens like NEAR and Fetch.AI have not replicated their robust performance seen in 2024. NEAR has dropped over 8% and Fetch.AI nearly 9% within the past day, while Nvidia's stock rose 15% from $133 to $153 at the same time. The declines in the AI token sector are attributed to a shift in focus towards more volatile AI agent tokens, much like memecoins, which are seen as having greater short-term gain potential. Additionally, Google searches for NEAR and Fetch.AI have plummeted by 47% and 84% respectively since March, indicating waning interest. The crypto market historically reacts negatively to rapid speculative upticks, and after last year’s excitement around AI tokens, Bitcoin emerged as the dominant narrative, benefiting from significant ETF inflows. While AI tokens remain in their early stages, the lack of mainstream applications and product maturity contributes to their struggles.

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