Despite the unbelievable hype around artificial intelligence (AI) and its potential synergy with cryptocurrency, AI cryptos are heavily hit by ongoing market recession. The most trending community meme coins are also in deep red, Messari’s Nick Garcia says.
AI, meme cryptos lost 60-70%: Analyst Nick Garcia
Altcoins associated with AI infrastructure and meme cryptocurrencies are among the worst performers, accompanied by the cryptos at the intersection of the DeFi and AI spheres. Such statements were shared by Nick Garcia, crypto analyst at Messari, with his X followers.
Absolute carnage in the streets 🔪🩸
Here’s a look at the top assets across recent “hot” verticals:
◦ AI Infra: Down an average of 71% from ATHs
◦ DeFAI: Down an average of 61% from ATHs
◦ Memecoins: Down an average of 63% from ATHsBear market or golden bull? You tell me. pic.twitter.com/empeSaeTpe
— Nick Garcia (@NickDGarcia) January 28, 2025
Garcia pointed out that AI infrastructure coins, including Ai16Z (AI16Z) and Virtuals Protocol (VIRTUAL), are down by 71% from the all-time high on average. ZEREBRO, a cryptocurrency associated with AI-focused GPU networks, is the absolute worst performer, with a 89% capitalization lost.
DeFAI cryptocurrencies, including the likes of BUZZ, COOKIE, GRIFT and AIXBT, lost 61% on average.
Garcia explained that the exact effects of this carnage for the market are yet to be seen:
Absolute carnage in the streets 🔪🩸 (…) Bear market or golden bull? You tell me.
Together with AI cryptocurrencies, meme coins are suffering. Eight largest meme cryptos are down by 63% from all-time high values.
All 2024 trends are under pressure, data says
Popcat (POPCAT), the largest cat-themed meme coin, and Solana’s largest meme crypto Dogwifhat (WIF) are the worst performers in this class, with 83% and 78% capitalization erased. In this context, Dogecoin (DOGE) looks like a beacon of stability with only a 35% price drop.
In January 2025, almost every trending class of altcoins is bleeding. For instance, in the last seven days, PolitiFi, a type of meme coins associated with politicians, dropped by 38%.
Also, Murad’s Memecoins — a pick of seasoned crypto analyst Murad Mahmudov — saw their capitalizations plummeting by 35% in just seven days.
By contrast, “serious” categories like RWA tokenization or liquid staking are in the green this month.
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