"DeepSeek Disrupts US AI: Market Cap Plummets 11.5% in 24 Hours"

Qubetics, a Chinese AI Lab led by Lian Wenfeng, has made waves in the global AI sector with its cost-effective AI model, DeepSeek. This innovative model has disrupted the US AI sector, which is dominated by expensive AI models. In the last 24 hours, the total market cap of the AI coins segment has dropped by around 11.5% due to the emergence of DeepSeek.

Almost all the top five AI coins have experienced this downward pressure. NEAR has slipped by 10.8%, ICP by 8.3%, Render by 12.6%, and FET by 9.7%. DeepSeek uses fewer GPUs compared to OpenAI, making AI models more cost-efficient and energy-efficient, and highly accessible. This development raises concerns about the future of GPU-heavy AI projects and the potential decline in demand for such models.

In the last seven days, NodeAI has seen a fall of 37.2%, and in the last 24 hours alone, the token has slipped by 22.9%. Similarly, Aethir has experienced a drop of 17.2% in the last seven days, with the token declining by over 8.8% in the last 24 hours. Analysts compare the decline of the AI sector with that of the GameFi sector, highlighting the inability of crypto games to match the performance of traditional games.

Investment in the GameFi segment dropped to at least $1.8 billion in 2024, with the GameFi sector recording a decline of 9.2% in the last 24 hours. During this period, almost all the top five GameFi tokens have experienced this downward pressure; IMX has plummeted by 12.1%, SAND by 11.4%, GALA by 15.1%, AXS by 11.1%, and FLOKI by 13%. These developments emphasize the importance of sustainable innovation for both AI and blockchain gaming sectors to thrive in the evolving tech landscape.

In a separate development, Virtuals Protocol, a decentralized platform for launching AI agents, has officially expanded to the Solana blockchain. This move aims to enhance accessibility, foster innovation, and empower developers across multiple ecosystems. The expansion, confirmed on January 25, represents Virtuals' first step