After many long-term holders capitulated and exited their positions following a dramatic crash, the market responded in typical crypto fashion—with a meteoric pump.
TL;DR…
- Crypto Market Rebounds: Bitcoin fell to ~$78,400 before surging 20% to ~$93,000, with altcoins also recovering. The Fear & Greed Index rose from 20 to 39, signaling reduced market fear.
- AI Token Sector Holds Strong: Despite a 1.7% decline in market cap, seven of the top 10 AI tokens saw gains. Story (IP) led with a 60.2% increase, while Bittensor (TAO) dropped 22.4%.
- Major AI Developments: Fetch.ai launched ASI-1 Mini, Hong Kong invested $125M into AI, and Rezolve AI unveiled a $1B Bitcoin treasury for AI-driven crypto payments.
- Bybit and Lightchain AI Make Moves: Bybit launched the AI-DOL SUPERSTAR accelerator, while Lightchain AI raised $16.8M in presale, despite concerns over its legitimacy.
It’s been another hectic week for the crypto industry.
After many long-term holders capitulated and exited their positions following a dramatic crash, the market responded in typical crypto fashion—with a meteoric pump.
Now, many tokens have recouped their recent losses and are once again showing signs of strength. Here’s how the last week unfolded…
>> Did you miss last week’s AI recap? Click here to check it out.
Market Overview
Despite a rough start to the week, things are now looking up for the cryptocurrency industry as a whole.
Source: Bitcoin (BTC) Coin Page
Just days ago, Bitcoin (BTC) fell to its lowest value since November 2024, touching as low as ~$78,400 on some exchanges.
Since then, the leading cryptocurrency has spiked almost 20% from the local bottom to reach its current value of ~$93,000. Overall, BTC is still down 3.1% for the week, but it’s showing renewed signs of strength following President Trump’s recent crypto reserve announcement.
Though most altcoins are still in the red, many have almost entirely recovered from their lows, while others are strongly in the green.
The same recovery is also seen in the stock market, among popular indices like the S&P 500, Nasdaq Composite, and Dow Jones Industrial Average—which bounced off the local bottom seen on Feb. 27.
Source: CMC Crypto Fear & Greed Index
The CMC Crypto Fear & Greed Index now sits at 39, indicating a slightly fearful market. This still marks a recovery from its all-time low of 20 seen just days ago.
AI Sector Recap
The recent choppy market action has done little to slow the momentum of the AI token sector.
Currently, seven of the top 10 AI tokens by market capitalization (mcap) are positive over the last seven days. Among these, Story (IP) leads the way with a 60.2% gain while Bittensor (TAO) is this week's biggest loser among the top 10, with a 22.4% loss.
Source: Top AI & Big Data Tokens Page
Overall, the AI sector saw its mcap decline by 1.7%, falling to $34.4 billion this week. This is largely due to the decline of Bittensor.
Zooming out, some of the smaller AI tokens are demonstrating particularly impressive strength. Some of this week’s biggest winners include:
- PinLink (PIN): gained 46.2%
- Grass (GRASS): gained 35.1%
- Masa (MASA): gained 25.9%
- Vana (VANA): gained 23.2%
But not all AI tokens held up quite so well. A handful of AI tokens suffered upwards of 20% losses this week, including:
- TARS AI (TAI): lost 27.3%
- PARSIQ (PRQ): lost 22.4%
- Forta (FORT): lost 22%
- AI Companions (AIC): lost 21.3%
The AI agent sector also made a comeback this week. Larger agent projects like Zerebro (ZEREBRO), Swarms (SWARMS) and ai16z (AI16Z) gained 30-65% apiece, while smaller projects like Casper AI (AIAGENT) and Aimonica Brands (AIMONICA) also demonstrated growth.
>> Keep tabs on your favorite AI agent tokens here.
Source: DefiLlama
According to DefiLlama's narrative tracker, the AI token sector held up particularly well despite turbulent market conditions. It's currently ranked sixth out of the 22 sectors tracked by the platform in terms of market cap-weighted performance.
The AI sector gained 6.6% against other categories over the last seven days, while the Ethereum token sector lost 7.1% as this week’s worst performer.
AI News Roundup
While AI token prices remain unpredictable, industry development continues to advance steadily.
Here, we’ve collected the most significant news stories to keep you up to date on the latest in AI.
Fetch.ai Launches Web3 Agentic Model: Fetch.ai has launched ASI-1 Mini, the first Web3-native large language model (LLM) optimized for agentic workflows. It delivers high performance with lower hardware requirements, enabling the Web3 community to invest in, train, and own advanced AI models.
Hong Kong To Invest $125 Million into AI: The Hong Kong government has earmarked 1 billion HKD (approximately $125.5 million) to establish the Hong Kong AI Research and Development Institute, focusing on advancing AI research and applications. The Hong Kong Generative Artificial Intelligence Research Center (HKGAI) also just unveiled Hong Kong's first AI model—HKGAIV1. (source 1, source 2)
Rezolve AI Announces $1 Billion Bitcoin Treasury: Rezolve AI (NASDAQ: RZLV) has initiated a $1 billion Bitcoin treasury program, beginning with a $100 million investment, to back its forthcoming AI-powered crypto payment platform developed in collaboration with Tether. This platform aims to facilitate seamless transactions in Bitcoin, Tether, and other digital assets for both consumers and retailers.
Bybit Launches AI-DOL SUPERSTAR Accelerator Initiative: Unperturbed by the recent $1.4 billion hack, Bybit Web3 has introduced the AI-DOL SUPERSTAR: Battle for Debut, an AI-focused accelerator program running from Feb. 28 to March 27, 2025. Over 30 AI projects, including VADER, FREYA, and TAOCAT, will compete for four Bybit Spot listings. Users can earn voting points by trading on the platform.
Lightchain AI Raises $16.8 Million in Presale: Lightchain AI has successfully raised over $16.8 million during its presale phase. The funds will support the development of its AI-driven blockchain platform, aiming to provide scalable solutions across various industries, including healthcare and finance. The report comes despite concerns surrounding its legitimacy.
>> That’s all for this week’s AI recap. Check in next week for more AI news, updates, and developments!
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