AI tokens lose $4.69B market cap in 3 days — When ‘UPtober?’
The cryptocurrency market experienced a sharp downturn as artificial intelligence and big data-related tokens shed $4.69 billion in market capitalization over three days.
The market, which stood at $38.82 billion on Sept. 30, fell to $34.13 billion by Oct. 3, raising questions about the anticipated “UPtober” trend that investors hoped would bring a market recovery.
Despite October’s historical trend of being a favorable month for traders, this year is shaping up to be “Octo-bear” rather than “UPtober.”
Chart depicting market cap and volume of AI and big-data tokens. Source: CoinMarketCap
Related: OpenAI raises an additional $6.6B at a $157B valuation
AI and big data tokens underwater
Among the leading AI and big data tokens, Near Protocol ( NEAR ) had the steepest decline, with a 14.88% decrease over the past seven days. At the time of writing, the token was priced at $4.61.
Other top-performing tokens, like Bitensor ( TAO ) and Internet Computer ( ICP ), also experienced substantial price declines, shedding 9.37% and 13.35%, respectively, over the same period.
This trend has affected the broader AI and big data market, with tokens like Render ( RNDR ) down 13.64% and Artificial Superintelligence Alliance ( FET ) down 16.68%.
Top coin performance of AI and big-data tokens. Source: CoinMarketCap
Related: AI will save us all, but only if it’s decentralized — SingularityNET CEO
UPtober fails to deliver
Historically, October has been a period of solid gains and market stability, with many expecting Bitcoin ( BTC ) and altcoins to see upward momentum throughout the month.
However, 2024 has defied that trend, with almost $5 billion wiped from the AI and big data token market cap just three days into October.
The broader crypto market has also seen a downward trend, driven by geopolitical factors, including the ongoing conflict in the Middle East, regulatory challenges and macroeconomic concerns.
Related: Apple, Google will use AI to maintain dominance — Cathie Wood’s ARK Invest
It’s not so bad after all
Despite the downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion.
Considering the shift in pace from three months ago, the AI and big data token market is up more than $13 billion, essentially trivializing the October loss in market cap.
While the long-term trend for BTC in the fourth quarter and early 2025 seems optimistic, recent signs indicate there could be some short-term volatility in October.
Magazine: Advanced AI system is already ‘self-aware’ — ASI Alliance founder
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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