Over the past 24 hours, major digital currencies such as Bitcoin and Ethereum have been trading well below their usual 2024 price. However, other sectors seem to be recovering from the sharp decline that began last Tuesday. Thus, both AI tokens and the so-called memecoins seem to be gradually overcoming the bad moment.
It is worth noting that these two types of tokens tend to show strong volatility compared to Bitcoin. The reason is that their market capitalization is remarkably low. The latter causes any realignment of their investors to result in a dramatic change in price.
AI tokens react thanks to the NVIDIA case
Just hours ago, the powerful artificial intelligence chip manufacturer NVIDIA denied reports about a lawsuit from the United States Department of Justice (DoJ). According to this rumor, the entity had sued the company for monopolistic practices in its semiconductor business.
Although the technology company’s shares on the stock exchange remain in decline, this is still good news. In this sense, the main digital currencies related to artificial intelligence and big-data reacted with a mini rally on Wednesday. During the first hours of this Thursday, these tokens maintain green numbers, although much more modest.
For example, NEAR, ICP and FET, the three largest by market cap, each show returns of over 2.2% over 24 hours. On a 7-day timeframe, the situation is much more uphill, with sharp pullbacks following Tuesday’s crash.
Meanwhile, the market capitalization of AI tokens stands at $26.29 billion, according to CoinMarketCap. This is a slight recovery compared to the state this indicator showed at the beginning of the week, when it dropped to $25 billion.
Memecoins are also recovering slightly
In another dynamic sector of the Cryptocurrency market, that of memecoins, green numbers also dominate in 24 hours. The most important coins in this area seem to emerge with better dynamics from the state of collapse that affects them in terms of a week. In this sense, tokens such as WIF and DOGS remain with high performance of +6% and 9% respectively.
Meanwhile, the main players Doge, Shiba and Pepe also have green numbers in 24 hours, although not as pronounced. As can be seen, this dynamic sector still has enormous sympathy among crypto investors. Even though it is far from the dynamics of the fever period, explosive returns are expected to return this year.
As far as market cap is concerned, memecoins are also showing a slight recovery. On Tuesday, the market cap plummeted to $36.07 billion amid massive liquidations. At the time of writing, it stands at $36.78 billion, as shown by data from CoinMarketCap.
As can be seen, despite the selling pressure caused by the US macroeconomic climate, crypto tokens maintain a dynamic performance.
Artificial intelligence tokens are recovering slightly from the slump that began earlier this week. Source: CoinMarketCap
Major cryptocurrencies remain in trouble
While AI tokens and meme coins seem to be showing signs of wanting to overcome the bad moment, Bitcoin remains bearish. Its price remains below $57,000 per coin and investors fear that it will not be able to recover in the short term.
The latter is particularly delicate, given that if the current state of the coin remains, capital could be depleted. As a result, depletion leads to additional sales, which could extend the price decline. The same reality is true for other major coins in this market such as Ethereum (ETH) and Solana (SOL).
Either way, for many investors, this stumble becomes an opportunity to buy these coins at a low price. This is assuming that prices are set to reach new all-time highs in 2025.
Disclaimer: This work is for informational purposes only and should not be taken as an invitation or investment advice under any circumstances. Cryptocurrencies are highly volatile assets and investing in them can lead to total losses.
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