AI Crypto Market Rebounds 29% to $31 Billion, Virtuals Protocol Jumps 60%

In recent months, the cryptocurrency community has been abuzz with speculation about the next big opportunity in the market. While some have written off the AI crypto sector, there are signs that AI projects, particularly those involving AI agents, are poised for a comeback. The AI crypto market experienced a significant surge toward the end of 2024, with its market value peaking at $70 billion in December. However, this was followed by a sharp decline to around $24 billion, leading many investors to lose interest as other crypto sectors also faced market uncertainty.

Despite this downturn, there has been a recent positive shift. The market cap for AI crypto has rebounded to approximately $31 billion, indicating a potential resurgence. Experts suggest that this could be an opportune moment for investors to take notice, as the best time to invest in crypto is often when others are not paying attention.

AI agents, which are special crypto tools powered by artificial intelligence, were a significant part of the earlier AI craze. Although many of these projects saw a decline in value, some have continued to develop behind the scenes. One notable example is Virtuals Protocol, which has shown signs of life again. In the past week, Virtuals’ price has jumped by over 60%. This project aims to simplify the launch and monetization of AI agents within its ecosystem. Despite hitting $4.50 in January, it is now trading under $1, indicating significant room for growth.

Other AI-related coins that are gaining attention include AIXBT and TRAC. AIXBT, once a popular AI agent platform for crypto research and analysis, has recently gained around 70% in a week. While it is still far from its all-time high, some believe it has the potential to recover as interest in AI agents returns. TRAC, a similar platform on the Solana blockchain, had a massive run-up before crashing. It now sits at a very low market value of $3 million, compared to its previous $100 million peak. Small market cap coins like TRAC can offer big returns but also come with high risks.

According to the analyst's forecast, the cryptocurrency market is expected to see a significant resurgence for altcoins during the upcoming altseason in 2025. This prediction is supported by bullish market signals, with traders closely monitoring leading altcoin market cap indices and Bitcoin dominance charts. The decline in Bitcoin's dominance index indicates a potential shift of capital toward altcoins, a key precursor to altseason.

Major altcoins like Ethereum and Solana have shown notable price increases. Ethereum saw a rise from $3,150 to $3,377, while Solana surged from $142 to $156. This trend is further supported by a significant uptick in Google searches for 'altseason 2025' and 'best altcoins to buy,' reflecting rising retail interest. Additionally, Ethereum's total value locked (TVL) in DeFi protocols increased, indicating heightened activity and confidence in Ethereum-based projects.

The trading implications of a potential altseason are significant for both retail and institutional investors. The total market cap of altcoins, excluding Bitcoin, increased, suggesting capital rotation from Bitcoin to smaller-cap coins, a classic altseason hallmark. AI-related tokens like Render Token have also shown correlation with altseason hype, gaining from $8.45 to $9.40. This rise in AI token interest ties into broader market sentiment, with AI development news boosting searches for 'AI crypto projects.'

From a technical perspective, key indicators and volume data support the altseason thesis. Ethereum's Relative Strength Index (RSI) on the daily chart stood at 62.4, indicating bullish momentum without entering overbought territory. Solana's RSI was similarly positioned at 64.7, suggesting room for further upside. The Moving Average Convergence Divergence (MACD) for ETH/BTC showed a bullish crossover, a signal often preceding altcoin outperformance against Bitcoin. Volume analysis reinforces this, with Ethereum's 24-hour spot volume reaching $1.1 billion and Solana's volume hitting $820 million, both showing significant increases week-over-week.

The intersection of AI and crypto markets could drive sentiment further, as AI innovations often influence investor interest in related blockchain projects. For traders searching for 'altseason trading strategies' or 'best AI crypto tokens 2025,' these metrics suggest monitoring altcoin dominance charts and AI token volumes for breakout signals. The data-driven insights point to a fertile ground for altseason profits if momentum sustains.