The AI sector is back on top form this week, adding $870 million to its market capitalization (mcap).
TL;DR:
- Macro: BTC reclaims $90K as altcoins, including the AI sector, rebound.
- Sector: AI mcap +$870M; TAO, NEAR, and tiny caps drive gains.
- News: Telegram Cocoon, AgentFlux, and TAO halving strengthen AI narrative.
Bitcoin (BTC) is back above the $90K threshold after a tumultuous weekend.
But the OG cryptocurrency is beginning to lose ground to altcoins, with its market dominance slipping to 58.5% as altcoins gained momentum.
Fear remains elevated, but altcoin sectors like the AI sector are beginning to show signs of recovery.
AI Market Recap
The AI sector is back on top form this week, adding $870 million to its market capitalization (mcap).
Much of this growth can be attributed to the performance of Bittensor (TAO) and Near Protocol (NEAR). These gained 12.8% and 9.2%, respectively, to further secure their positions as the two largest AI tokens.
Meanwhile, AI tokens in the <$50 million mcap range formed the overwhelming majority of this week’s biggest winners. This suggests speculators are beginning to shift risk-on, focusing on tokens with high growth potential (and volatility).
This week’s best performers and their catalysts (where known) include:
- GaiAI (GAIX): +267.3% (Post-launch momentum from recent Binance Alpha listing).
- SKYAI (SKYAI): +70.2% (Unclear catalyst)
- SentismAI (SENTIS): +39.4% (Exchange listings + new ecosystem releases)
Source: Top AI Tokens Page
Despite the broad rally, a handful of AI tokens suffered heavy losses. Meme coins and AI infrastructure providers featured heavily among this week’s worst performers.
Tradoor (TRADOOR), in particular, suffered heavy losses, retracing last week’s parabolic pump as holders sought to take profits into thin liquidity.
Overall, the AI sector is showing strong signs of recovery, but growth is largely concentrated among established assets, while smaller projects are beginning to attract a speculative bid.
That said, the AI sector isn’t alone in its recovery.
Per Artemis, 22 of the 24 sectors tracked by the platform are now in the green week-over-week (WoW). The AI sector is roughly in the middle of the pack when it comes to WoW growth.
Source: Artemis
AI News Roundup
Several major developments in the crypto AI space supported this week’s recovery. Below, we’ve provided a summary of some of this week’s most significant headlines.
Telegram’s Cocoon Brings Private AI Compute to TON: Telegram launched Cocoon, a decentralized confidential-compute network on TON that lets GPU owners earn Toncoin for processing private AI workloads. It positions TON as a DePIN-style AI backbone and paves the way for privacy-first AI inside Telegram.
https://twitter.com/durov/status/1995208789600182391
Axelar’s AgentFlux Puts AI Agents On-Chain Without Exposing Keys: Axelar introduced AgentFlux, an open-source framework that lets AI agents execute on-chain trades and DeFi actions while keeping private keys and strategies local. It aims to reduce cloud dependence and standardize cross-chain, agentic finance workflows.
https://twitter.com/axelar/status/1996560894525124864
Bittensor Readies for Its First Halving as Subnets Mature: Bittensor’s first halving, expected mid-December, will cut daily TAO emissions from 7,200 to 3,600 as over 100 subnets mature into revenue-generating AI services. Analysts frame the event as a key milestone for decentralized AI infrastructure. (source)
>> That’s all for this update. Check in next week to stay on top of the latest AI developments and insights!
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators. This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice. The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
