Crypto narratives are shifting dramatically this week, as AI tokens, Real-World Assets (RWA), and meme coins are all experiencing significant corrections. The AI sector, previously a top performer, has seen its market cap plunge by 42% in the last month, with major tokens like FET and RENDER also facing losses.
Concurrently, the RWA sector has dropped from $72 billion to $55.5 billion in just three days, although potential regulatory clarity in the US could offer long-term support. Meme coins have not been spared either, with the top 10 tokens all declining by at least 22% in the past week.
AI Tokens
The artificial intelligence sector has been hit hard in the crypto market lately. After hitting a peak market cap of $60 billion in early January, it has now plummeted to $32.8 billion, marking a significant decline.
Some of the prominent AI tokens have suffered substantial losses in the recent week, with FET down 32.2%, RENDER falling by 27.21%, and VIRTUAL losing 35%.
The correction that began about two weeks ago has spread throughout the industry, driving many AI tokens to multi-month lows.
With the AI crypto market cap down by almost 42% in the past month, the upcoming week could be pivotal in determining whether these assets stabilize for a potential rebound or face further declines.
Real-World Assets (RWA)
The Real-World Assets (RWA) sector has also seen a sharp decline, with its market cap decreasing from $72 billion to $55.5 billion in just three days.
Despite this setback, RWA remains a substantial asset class within the crypto sphere, with nine projects having market caps exceeding $1 billion. Leading players such as Chainlink, Avalanche, Hedera, Mantra, and Ondo continue to drive the sector's growth.
Although recent corrections have impacted RWA valuations, the sector remains an intriguing narrative within crypto. It stands to benefit from potential regulatory advancements in the US, a sentiment supported by certain figures like Donald Trump.
An improved regulatory framework could unlock new possibilities for RWA applications. With notable institutional players like BlackRock and Morgan Stanley showing interest, the sector is attracting mainstream attention, bolstering its long-term growth potential.
Meme Coins
In the midst of today's liquidation chaos, the meme coin sector, a prominent crypto narrative, has taken a substantial hit. The top 10 meme coins have all declined by at least 22% in the past week, with PENGU leading the losses by a 46% drop. Currently, only five meme coins maintain a market cap exceeding $1 billion.
Over the past 30 days, the entire meme coin market has shrunk by 37%, reducing its total valuation to $68 billion. This sharp correction signals a shift in sentiment, with meme coins losing the momentum seen in previous months.
Recent data indicates that meme coin interest has declined below that of DeFi, a shift not observed in recent times.
This shift suggests that investors may be reallocating funds from meme coins to more traditional DeFi assets or stablecoins.
With waning engagement and falling prices, meme coins are encountering heightened selling pressure. Unless a new catalyst emerges, their market dominance may continue to diminish.