#AI Tokens Cool Down#

While Nvidia's recent conference sparked optimism for AI stocks in traditional markets, AI crypto tokens failed to replicate their epic 2024 surge. Last March, ahead of Nvidia's annual conference, NEAR token doubled, a rally mirrored across the broader crypto AI market. However, this year, AI tokens have shown their fragility, with NEAR dropping over 8% in the past 24 hours and FET falling nearly 9%. This contrasts with Nvidia's strong performance, which traded at $133 at the start of the year and surged 15% to $153 on Monday as the conference began.Reasons for the AI token chill include the emergence of AI agent tokens, which share similarities with memecoins due to their volatility and fervent followers, leading investors to favor trading these tokens for their potential for triple-digit or even quadruple-digit gains, while mainstream AI tokens are harder to move due to their larger market caps; and waning interest in AI tokens, with Google search trends showing a 47% and 84% decline in searches for "NEAR token" and "Fetch.ai" respectively since March.While AI tokens are still in their infancy, with few mainstream use cases for crypto AI projects, the AI token's fall from grace is not surprising. The crypto market is notoriously fickle, accustomed to punishing sectors that rise quickly on speculation. Last year's rally was a case in point: people invested in AI tokens because they believed it would be the main narrative of the crypto bull run, but instead, Bitcoin stole the show with billions of dollars in ETF inflows and bullish sentiment fueled by Donald Trump's presidential victory.