Hold onto your hats, crypto enthusiasts! The AI crypto market just took a nosedive, plunging 13.3% and leaving investors scratching their heads. What’s the culprit behind this rollercoaster ride? Enter stage left: DeepSeek R1, the slick new AI model from China that's shaking things up in a big way.
Imagine this: a powerhouse AI model developed for a mere $6 million, going toe-to-toe with the big names like those from OpenAI, which cost billions to make. The arrival of DeepSeek has spooked investors, sending ripples of doubt through both the AI and crypto worlds. It's like a plot twist in your favorite thriller!
The impact was felt far and wide. Even tech giant Nvidia felt the tremors, with its stock taking an 8.5% hit. The shockwaves didn’t stop there, as Bitcoin stumbled to an 11-day low, dragging other tokens along for the ride.
In the wild world of AI tokens, DOGEai was the biggest casualty, crashing by almost 45% overnight. Meanwhile, the Empyreal token, which aims to simplify the crypto universe for everyone, took a hit too. It dropped from $189 to $132 but is now clawing its way back to $144.83. Talk about a comeback!
And let's not forget Henlo, the quirky little token that combines hamster racing and AI. It saw a dramatic 20% plunge, losing nearly 43% of its value over the week. Despite this, it’s still sitting pretty with a 60% boost from its price a month ago. Not too shabby!
Even the big players like NEAR Protocol and Internet Computer (ICP) weren't spared. NEAR slipped 11.1%, while ICP slid down by 8.5% in just 24 hours, suffering an 18% drop over the week. Yet, ICP clings to its spot as the 40th largest cryptocurrency by market cap. Hang in there, ICP!
All in all, the AI crypto category is down by 13.3% since yesterday, with its 548 tokens now valued at around $36.2 billion. Over the past week, it's taken a 12% dive, faring worse than the broader crypto market, which dipped 7.7%.
So, buckle up, folks! The crypto world is one wild ride right now, and it looks like DeepSeek just hit the turbo button. Stay tuned for more twists and turns in this exciting saga!
