The market is in a clear state of euphoria right now, with practically every major altcoin in the green over the last week.
TL;DR…
- Altcoins Surge: Bitcoin's dominance drops to 53.5% as altcoins like Stellar, Tron and XRP see significant gains, marking a bullish trend in early December 2024.
- AI Tokens Rally: The AI token sector grows 34.6%, with Internet Computer, Filecoin and Artificial Superintelligence Alliance leading the surge.
- CSPR Goes AI: CSPR AI Agents set to launch on Casper Network, enabling users to create, trade, and upgrade tokenized AI Agents without coding, and featuring staking and a deflationary token model.
- Freysa AI Challenge Defeated: Ethereum user "p0pular.eth" manipulates AI agent Freysa to release a 13.19 ETH prize pool (~$47,000) after 482 attempts, highlighting AI system vulnerabilities.
The market is in a clear state of euphoria right now, with practically every major altcoin in the green over the last week.
With Bitcoin (BTC) still flirting with $100K, but most altcoins outperforming over the last 90 days, things are looking bright for the AI sector.
Let’s see what’s going on, shall we?
>> Did you miss last week’s AI update? Check it out here.
Market Overview
The first week of December 2024 has been extremely bullish for altcoins.
While Bitcoin (BTC) has fluctuated between $93,000 and $98,000, up 3.7% for the week, many prominent altcoins have smashed these figures.
In particular, the past week was marked by the dramatic resurgence of so-called “dino coins”—that is, older cryptocurrencies like Stellar (XLM), Tron (TRX) and XRP.
Overall, Bitcoin's dominance has dropped to just 53.5%, its lowest value since June 2024.
Source: Crypto Market Cap Page
Meanwhile, the total market capitalization of altcoins (barring ETH) increased from $803 billion to $982 billion—equivalent to an average gain of 22.2% across the board.
The CMC Altcoin Season Index now stands at 89/100, meaning eight out of the top 100 altcoins have outperformed BTC over the last 90 days.
This is well into altcoin season territory.
AI Market Recap
The AI token sector has exploded over the past seven days, with every AI token in the top 50 by market capitalization in the green over this period.
Overall, the AI token sector has climbed from $49.18 billion to $66.22 billion over the last week, representing a 34.6% average gain among AI tokens.
Among the top 10 largest AI tokens, these are the largest gainers:
- Internet Computer (ICP): gained 30.3%
- Filecoin (FIL): gained 50.7%
- Artificial Superintelligence Alliance (FET): gained 34%
Bittensor (TAO) returned to form over the last week, gaining 19.4% and briefly touching $717. It’s now hovering around the $700 price point.
Source: Top AI & Big Data Tokens Page
Meanwhile, Near Protocol (NEAR) climbed the ranks to secure its position as the No.1 AI sector token by market capitalization.
After gaining 13.2% in the last week and 107.9% in the last month, the platform now has a market capitalization of $9.3 billion.
Looking at some of the smaller AI projects, a handful have seen nothing short of a meteoric rise in the last week.
The top five gainers now include:
- bitsCrunch (BCUT): gained 177%
- Virtual Protocol (VIRTUAL): gained 97.7%
- Limewire (LMWR): gained 94%
- Humans.ai (HEART): gained 78.9%
- Commune AI (COMAI): gained 64.9%
In a move that surprised many, Casper Network (CSPR) gained 40.2% over the last week on the back of news surrounding its first AI product, CSPR AI Agents (more on this later).
Over the last week, the autonomous agent and AI-based meme meta have somewhat weakened, with market leaders like Fartcoin (FARTCOIN) and Goatseus Maximus (GOAT) down 45.7% and 17%, respectively.
Recently, an Ethereum user, known as "p0pular.eth," persuaded the AI agent Freysa—programmed to prohibit fund transfers—to release its 13.19 ETH prize pool (approximately $47,000) after 482 attempts. Participants paid escalating fees to send messages attempting to convince Freysa to transfer funds.See the below thread for a complete breakdown of the challenge and its eventual solution.
AI News Roundup
The last week was packed with exciting news, developments and updates from the AI sector.
We’ve distilled the essence of the most important stories for you below:
Elon Musk Sues OpenAI Again: Elon Musk has filed a lawsuit seeking to prevent OpenAI's transition to a for-profit entity, alleging anticompetitive practices and a breach of its original nonprofit mission. OpenAI refutes these claims, asserting they are without merit.
Ark Investment’s Cathie Wood Predicts Trump AI Deregulation: Cathie Wood, CEO of Ark Investment Management, anticipates President-elect Donald Trump's administration will implement deregulation policies, fostering growth in sectors like technology, artificial intelligence, and cryptocurrency. She criticizes the current regulatory environment under SEC Chair Gary Gensler for hindering U.S. leadership in the crypto industry.
Casper Network To Get First AI Agent Platform: CSPR AI, set to launch on the Casper Network blockchain, will enable users to create, trade, and upgrade tokenized AI Agents without coding. Features include staking for performance enhancement, fractional ownership, and creator royalties. Marketplace transactions burn $AIAGENT tokens, introducing a deflationary aspect.
Tokenized GPU Sharing Startup GAIB Raises $5 Million: GAIB, an AI compute economic layer, secured $5 million in pre-seed funding co-led by Hack VC, Faction, and Hashed. The platform tokenizes GPUs and their yield, aiming to democratize access to AI and computing resources.
QAN Platform Partners With IBM: QANplatform has become an official IBM Business Partner, introducing QAN Q-Cluster—a tamper-proof, self-auditing system that utilizes AI for log anomaly detection and incorporates quantum-resistant blockchain technology for enhanced security and data integrity.
>> That’s a wrap for this week’s AI recap. Join us next week for another dose of AI news.
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