AI token sector dropped 18%, shedding $5.5B in market cap.
TL;DR:
- AI token sector dropped 18%, shedding $5.5B in market cap.
- Most majors plunged; Virtuals Protocol ~28%; a few outliers like BID gained.
- Developments continued: SparkChain funding, Fetch.ai buyback, AEON–Bybit integration.
The market is in shambles this week, with few cryptocurrencies remaining unscathed. Bitcoin (BTC) briefly fell below $100K as geopolitical tensions escalated in the Middle East, while Truflation shows inflation once again creeping up.
Bitcoin's dominance touched a new yearly high of 64.9% while the CMC Fear and Greed Index slipped back into fear territory at 37.As you might expect, things didn’t bode well for the AI sector during this period. 👇
AI Sector Recap
The AI sector continued its slide this week, recording one of the worst seven-day declines since tracking began in March 2021.
Source: Top AI Tokens Page
A further $5.5 billion was shed from the sector's market capitalization (mcap) this week, equivalent to an 18.3% decline.
The top 100 AI tokens saw shattering losses almost across the board, with several of the largest tokens experiencing losses of more than 17%. Virtuals Protocol (VIRTUAL) is currently the worst-performing of the top 10 AI tokens, suffering a 27.9% decline.
Some of the worst-affected tokens include:
- Solidus Ai Tech (AITECH): -34%
- aixbt (AIXBT): -30.1%
- Nillion (NIL): -30%
- SUPRA (SUPRA): -29.7%
Just a handful of tokens managed to weather the storm and remain positive over the last week, these include:
- CreatorBid (BID): +42.8%
- tokenbot (CLANKER): +14%
- Bubblemaps (BMT): +13.4%
- Forta (FORT): +6.3%
Source: Artemis
Despite the shattering losses, the AI sector is far from the worst-performing sector this week. According to data from Artemis, the AI sector is the seventh-worst-performing sector of the 24 tracked by the platform, with a 14.7% decline in fully diluted mcap. For comparison, the data availability sector performed the worst, losing 17.7%.
Overall, the AI sector is showing significant signs of weakening. Most major AI tokens are printing bearish head-and-shoulders or descending channels on their daily charts.
The coming weeks will be crucial in determining how the rest of the summer will unfold.
AI News Roundup
Despite the bearish price action, there was no shortage of significant developments in the AI space this week.
Below, we’ve covered some of the most relevant updates:
SparkChain AI Secures $10.8M To Scale DePIN Compute: SparkChain AI has raised $10.8 million in a round led by OakStone Ventures. The funds will expand its Solana-based decentralized compute network, optimize real-time AI processing, and cement new infrastructure partnerships. (source)
Fetch.ai Unveils $50M FET Buyback: On June 19, 2025, Fetch.ai CEO Humayun Sheikh announced a $50 million buyback of FET tokens across multiple exchanges, aiming to reduce supply, back the ASI1 integration, and bolster token utility with foundation oversight and market-maker support.
AEON & Bybit Enable Web3 Payments: Crypto payment platform AEON has integrated its Web3 system into Bybit, enabling the exchange’s 70 million users to spend crypto via QR code at 20 million merchants and 10,000+ brands.
>> That’s a wrap for this week’s update! Let’s hope conditions improve before our next recap.
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