The crypto market may be due for another narrative shift as meme coins prepare for a potential resurgence, while AI agent tokens continue to see declining interest.
AI agents took the stage in late 2024, sidestepping meme coins as analysts shifted their gaze to altcoins with real-world value rather than speculative assets.
AI Tokens Decline, Meme Coins Poised for Resurgence
Recent data from Dune reveals that only 6-7 AI agent tokens are being created daily on Virtual, a staggering 99.5% drop from their peak in December last year. The sharp decline reflects waning enthusiasm for AI agent tokens, even as the broader AI narrative remains a dominant theme in the market.
Despite this downturn, some analysts remain optimistic about the long-term potential of AI-powered crypto projects. As BeInCrypto reported, new AI agent launches show mixed signals, with some sectors seeing renewed activity.
Specifically, some, such as VIRTUAL, AI16Z, and AIXBT, have experienced gains in the last seven days. Meanwhile, others are still in a downtrend, like FAI, down 28%, and TRAC, down 19%.
Amidst these mixed signals, data on Cookie.fun shows the total market cap of crypto AI agent coins has dropped to $6.95 billion. None of the AI agent tokens has surpassed $1 billion individually on market cap metrics.
Industry experts have also highlighted how AI agents are poised to transform the workplace, further cementing artificial intelligence’s role in the digital economy. However, the recent slump in AI token creation suggests immediate market demand has cooled.
Meanwhile, the meme coin sector is experiencing its upheaval. Solana-based token launchpad Pump.fun, has been removed from the top 10 highest revenue-generating protocols in the last 24 hours.
“Pump.fun gets kicked out of the top 10 highest revenue-generating protocols in the last 24 hours as the number of bonded meme coins is plummeting to zero,” SOL ecosysten commentary The Solana Post noted.
Yet, meme coins might not remain in the shadows for long. AI mindshare, which hit over 70% last month, has since dropped to 32%, indicating a shift in market focus.
Why Meme Coins May Be Primed For Recovery
With the US SEC (Securities and Exchange Commission) recently announcing that meme coins are not classified as securities, industry participants anticipate a revival in the sector’s trading activity.
“SEC just officially ruled meme coins are not securities. This is about to bring massive on-chain volume. The trenches are about to get wild,” wrote Lynk, a popular user on X.
According to the user, Solana (SOL) could benefit from the prospective meme coin comeback. This assumption is based on the sector’s heft of Solana-based meme coins. The logic is that if meme coins stage recovery, traders and speculators would pour liquidity into the ecosystem, buying SOL to participate in launches on Pump.fun. This would potentially increase SOL’s demand and, in turn, its price.
Meanwhile, the SEC’s stance on meme coins represents a significant development for the sector. As BeInCrypto highlighted, the ruling removes a key regulatory uncertainty that has weighed on speculative tokens. The move is expected to encourage a fresh wave of meme coin projects and speculative trading, potentially bringing back the fervor seen in previous cycles.
Furthermore, the dYdX Foundation CEO Charles D’Haussy commented on the future of meme coins under Donald Trump. He acknowledged their impact on the crypto market and the broader financial ecosystem.
“I think they [meme coins] are a very good tool for people to show their interest, to show their support. I can imagine that in the future, people will buy meme coins, and they will not be called meme coins anymore,” D’Haussy told BeInCrypto.
As Bitcoin teases with a bear cycle, the divergence between AI agents and meme coins highlights shifting investor sentiment. While AI agents still command significant mindshare, their market dominance has weakened, potentially allowing meme coins to reclaim the spotlight.
The regulatory clarity provided by the SEC could catalyze increased meme coin activity. For now, however, the crypto market remains in flux.
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