AI Coin Concentration: Only Bittensor (TAO) Survives... "90% Wiped Out"

▲ Source: Bittensor (TAO) X

The bubble in the virtual asset market, which saw indiscriminate surges just by bearing the artificial intelligence (AI) label, is now deflating. A selective weeding out process, strictly verifying liquidity and real-world usage metrics, has begun in earnest.

According to Benzinga on September 19 (local time), Alice Liu, Head of Research at CoinMarketCap, a virtual asset market data provider, said in an exclusive interview with the media, "Capital has increased, but the number of projects has decreased," and diagnosed, "The AI label used to be free, but the market is now demanding its price." She explained that in the past, the entire theme would rise together with a simple narrative, but now it has been reorganized into a selective market where capital is concentrated only on promising projects, much like choosing individual stocks.

Currently, there are approximately 945 AI and big data themed tokens registered on CoinMarketCap. Their combined market capitalization is $18.5 billion, accounting for about 0.7% of the total virtual asset market ($2.64 trillion). However, behind these outwardly large figures lies extreme polarization. It was confirmed that among all 945 tokens, less than 1 in 10 projects simultaneously met the criteria of a $20 million market capitalization and $1 million in daily trading volume.

Actual capital inflows are concentrated on a select few leading projects that have secured unique technological capabilities and liquidity. Bittensor (TAO) rose by 24% over 30 days, recording a market capitalization of $2.8 billion, solidifying its position as the largest token in the pure AI sector. Venice AI token also surged nearly twofold in price over a month as of September 10, reaching a market capitalization of approximately $1.1 billion. NEAR Protocol (NEAR) also maintained a strong upward trend, rising 27% weekly.

Conversely, the majority of lower-tier AI tokens that have not proven their competitiveness are being marginalized with rapidly declining trading volumes. The AI theme has maintained its position among the top three most noteworthy narratives in the market over the past 7 and 30 days. However, it is assessed that the era where such popular interest led to indiscriminate price surges across the entire theme has ended.

Investors' approach is also evolving from simple theme-riding purchases to precise analysis that considers liquidity, actual adoption, and individual catalysts. As the capital restructuring across the entire AI ecosystem accelerates, the price gap between core projects with unique infrastructure and mere theme-based tokens is expected to widen further.

[Article Key Summary]

-Among CoinMarketCap's 945 AI tokens, less than 10% exceed a $20 million market cap and $1 million in daily trading volume.

-Bittensor (TAO) maintained its top position in pure AI with a market cap of $2.8 billion, while Venice AI and others surged twofold, monopolizing capital.

-The era of indiscriminate AI theme-driven surges has ended, and the market has been reorganized into a selective phase focused on liquidity and real-world usage metrics.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*