While the market benchmark is down by 0.4% today, AI cryptocurrencies represent the worst-performing segment of digital assets. The rocketing popularity of DeepSeek, a novel Chinese AI app, might be causing pessimism on the AI crypto market.
AI cryptos in red today: VIRTUAL, TAO, FET amid worst performers
Today, Jan. 28, 2025, AI cryptocurrencies are the top losers amid the 100 largest cryptocurrencies. Virtuals Protocol (VIRTUAL), Artificial Superintelligence Alliance (FET), Render (RENDER) and Bittensor (TAO) are the worst performers on the 24-hour time frames, according to CoinGecko data.
VIRTUAL is down by 6.6% and is almost ready to lose its place in the top 100. The oldest mid-cap AI cryptocurrency, Artificial Superintelligence Alliance (FET), lost 4%, while Render Network (RENDER), a project focused on decentralized GPUs for crypto, is down by 3.2%.
Also, Bittensor (TAO), a long-running AI infrastructure project, has seen its TAO token losing 2% in 24 hours. In the cryptocurrency segment, AI-related tokens are also performing extremely poorly today.
For instance, AI Agents-associated coins lost 12.1% in 24 hours, while AI memes are down by 10%, with $100 million erased in 24 hours.
No, DeepSeek did not start as Bittensor subnet
The panic on the AI cryptocurrencies market is associated with the recession in AI stocks. This, in turn, was catalyzed by the announcements of DeepSeek, a ChatGPT analogue that allegedly works 30x more cost-efficient.
Yesterday, NVIDIA stocks lost $600 billion in 24 hours, touching their lowest level since early October 2024.
Also, on Crypto Twitter, a rumor spread about DeepSeek's alleged association with Bittensor. A screenshot from a Chinese newspaper started circulating, but the myth was busted.
