Market Overview
Bitcoin (BTC) has reclaimed the $90K threshold following a volatile weekend. However, the original cryptocurrency is beginning to cede ground to altcoins, with its market dominance slipping to 58.5% as altcoins gain momentum. Fear remains elevated in the market, but sectors such as the AI sector are showing early signs of recovery.
AI Market Recap
The AI sector has demonstrated a strong resurgence this week, adding $870 million to its market capitalization. This growth is largely driven by the performance of Bittensor (TAO) and Near Protocol (NEAR), which saw gains of 12.8% and 9.2% respectively, solidifying their positions as the leading AI tokens.
Tokens within the sub-$50 million market capitalization range constituted the majority of this week's top performers. This trend suggests a shift towards risk-on sentiment among speculators, with a focus on tokens exhibiting high growth potential and volatility.
Top Performing AI Tokens
- •GaiAI (GAIX): +267.3% driven by post-launch momentum following a recent Binance Alpha listing.
- •SKYAI (SKYAI): +70.2% with an unclear catalyst.
- •SentismAI (SENTIS): +39.4% supported by new exchange listings and ecosystem releases.
Despite the widespread rally, several AI tokens experienced significant declines. Meme coins and AI infrastructure providers were notably among the week's worst performers. Tradoor (TRADOOR) saw substantial losses, retracing its previous week's parabolic surge as investors took profits in a low-liquidity environment.
Overall, the AI sector is exhibiting robust recovery signs, with growth concentrated in established assets, while smaller projects are beginning to attract speculative interest. However, the AI sector is not alone in this recovery trend.
According to Artemis data, 22 out of 24 tracked sectors are showing week-over-week gains. The AI sector ranks approximately in the middle of the pack in terms of week-over-week growth.
AI News Roundup
Several significant developments within the cryptocurrency AI space have contributed to this week's market recovery. The following is a summary of some of the most impactful headlines:
Telegram's Cocoon Enhances Private AI Compute on TON
Telegram has launched Cocoon, a decentralized confidential compute network built on TON. This platform enables GPU owners to earn Toncoin by processing private AI workloads. Cocoon positions TON as a DePIN-style AI backbone and facilitates privacy-first AI integration within Telegram.
Axelar's AgentFlux Enables On-Chain AI Agents Without Key Exposure
Axelar has introduced AgentFlux, an open-source framework designed to allow AI agents to execute on-chain trades and DeFi actions while maintaining the security of private keys and strategies locally. The initiative aims to reduce reliance on cloud infrastructure and standardize cross-chain agentic finance workflows.
Bittensor Prepares for Its First Halving Amid Subnet Maturation
Bittensor is nearing its first halving event, anticipated in mid-December. This event will reduce daily TAO emissions from 7,200 to 3,600 as over 100 subnets mature into revenue-generating AI services. Analysts view this halving as a critical milestone for decentralized AI infrastructure.