Crypto Price Momentum in Late Q3 2025: Emerging Leaders Among Traditional and AI-Linked Cryptos

The cryptocurrency market in late Q3 2025 has been a tale of two worlds: the steady, if underwhelming, performance of traditional cryptos like Bitcoin and the explosive growth of AI-linked tokens. As the sector's total capitalization grew by 9.9% year-to-date, investors are increasingly shifting their focus to projects leveraging artificial intelligence, decentralized infrastructure, and utility-driven platforms. This analysis unpacks the key players and trends shaping the quarter.

Traditional Cryptos: Bitcoin's Struggle and Ethereum's Resurgence

Bitcoin, the market's bellwether, saw a modest 6% gain in Q3 2025, lagging behind the 29.9% surge in altcoin capitalization and the 16% growth of tokenized gold, according to XBO analytics. While Bitcoin's dominance briefly peaked at 65.1%, it settled at 57.2% by quarter-end, signaling a shift toward alternative assets, according to a CryptoPotato report. Meanwhile, Ethereum outperformed, surging 66% on the back of ETF inflows and the Pectra upgrade, which slashed fees and boosted transaction volumes, according to XBO analytics.

Altcoins, particularly BNB Chain and Ethereum-based tokens, led volatility-adjusted returns, driven by demand for utility-driven platforms, according to CryptoTale analysis. Stablecoins also saw a 16% supply increase to $290 billion, bolstered by regulatory clarity from the GENIUS Act, according to CryptoTale analysis.

AI-Linked Cryptos: The New Vanguard

The AI-linked sector, now a $31.9 billion market segment, has emerged as a standout. Bittensor (TAO) led the charge, trading at $377.80 with a $3.63 billion market cap, fueled by institutional interest in its decentralized AI infrastructure, according to AllAboutAI data. NEAR Protocol (NEAR) followed closely, with a $3.51 billion market cap and $2.81 price, driven by its role in AI tooling and cloud computing, per AllAboutAI data. Render (RENDER) maintained steady growth at $3.93, anchored by its metaverse and AI-driven graphics applications, per AllAboutAI data.

Grayscale's Artificial Intelligence Crypto Sector, comprising 24 assets, grew from $5 billion in 2023 to $15 billion in 2025, according to XBO analytics. Despite its small size (less than 1% of Bitcoin's market cap), the sector's innovation—such as Bittensor's incentivized AI development—positions it as a long-term growth driver, according to XBO analytics.

Memecoins: Beyond Meme Culture

Even the memecoin category saw unexpected momentum. Little Pepe ($LILPEPE) gained traction with a Layer-2 infrastructure and presale success, while Pepe Coin (PEPE) rebounded 41% in a month, targeting $0.000035 by Q4, according to XBO analytics. Dogecoin (DOGE), meanwhile, was projected to hit $1.07 by year-end, signaling a potential revival, according to XBO analytics. These tokens, once dismissed as speculative, now reflect broader adoption of blockchain-based entertainment and community-driven projects.

The Bigger Picture

The Q3 2025 data underscores a clear trend: investors are prioritizing innovation and utility over pure speculation. While Bitcoin and Ethereum remain foundational, AI-linked cryptos and memecoins are carving out niches by addressing real-world applications—from decentralized AI networks to metaverse integration.

For investors, the key takeaway is diversification. Traditional cryptos offer stability, but the AI sector's 300% growth since 2023, per AllAboutAI data, and memecoins' unexpected resilience suggest that risk-tolerant portfolios should allocate to these emerging leaders. As the crypto market continues to evolve, the intersection of AI and blockchain will likely define the next bull run.