AI tokens rebounded 2.8% to a $27.4B market cap.
TL;DR…
- Crypto Market Volatility: Bitcoin dipped below $77K before recovering to $83K; Ethereum fell 10.2%. Bitcoin ETFs saw continued outflows, but market fear has slightly eased.
- AI Sector Recovery: AI tokens rebounded 2.8% to a $27.4B market cap. Qubic (+50.2%) and LimeWire (+30.2%) led gains, while AI Companions (-29.1%) and AI Rig Complex (-21.7%) lagged.
- AI Sector Strength: AI outperformed most sectors, ranking 8th in mcap-weighted gains (+13.2%), with CEX tokens leading at +15.7%, signaling resilience despite recent downturns.
- AI News Highlights: Kaito AI socials hacked; Morpheus AI conference announced; Virtuals Protocol revenue plummeted 98.6%; Google launched AI Mode; and Sesame released its open-source voice model, CSM-1B.
As two of the most rapidly developing industries, the AI and blockchain sectors are largely expected to see significant overlap in the coming years.
But looking at the price action in recent weeks, it’s clear that the road ahead will be bumpy and fraught with unexpected twists and turns.
In this week’s AI recap, we examine how sentiment has changed over the last week and how this relates to the broader market conditions.
Let’s dive in.
Market Overview
The past week has been another volatile period for the cryptocurrency market, with many digital assets experiencing a sudden sell-off earlier in the week, before somewhat recovering.
Source: Bitcoin (BTC) Coin Page
Bitcoin (BTC) fell to its lowest value so far in 2025 after briefly dipping below $77,000, but it’s currently up 0.2% for the week at its current value of around $83,000.
Ethereum, on the other hand, is down 10.2%, hovering around the $1,900 price point.
The 12 U.S. Bitcoin exchange-traded funds (ETFs) have now experienced the longest sequence of weekly outflows since their inception a year ago.
However, following up on last week’s report, the sense of extreme fear permeating the market has now somewhat relaxed.
Source: CMC Crypto Fear & Greed Index
The CMC Crypto Fear & Greed Index has improved from 17 (extreme fear) to 22 (fear).
AI Sector Recap
The AI sector held up relatively well over the last week, recovering from a significant sell-off that briefly sent many AI tokens to their yearly lows.
Source: Top Big Data & AI Tokens Page
Overall, the sector gained 2.8% in the last week and sits at a $27.4 billion market cap.
>> Did you miss last week’s AI update? Check it out here.
Though the sector as a whole is on the up, individual AI tokens saw mixed performance.
Currently, six of the top 10 largest AI tokens are in the green this week, and two-thirds of the top 100 by market capitalization (mcap) are also performing well.
Some of this week’s standout AI tokens include:
- Qubic (QUBIC): gained 50.2%
- LimeWire (LMWR): gained 30.2%
- yesnoerror (YNE): gained 27.7%
- Venice Token (VVV): gained 24.9%
- Vana (VANA): gained 25.1%
Unfortunately, a significant proportion of AI tokens were unable to recover from the recent sell-off and currently remain in the red.
Some of this week’s worst performers include:
- AI Companions (AIC): lost 29.1%
- AI Rig Complex (ARC): lost 21.7%
- TARS AI (TAI): lost 21.3%
- Grass (GRASS): lost 21.2%
- Victoria VR (VR): lost 15.5%
Compared to other sectors, the AI sector is showing particular strength.
According to DefiLlama’s narrative tracker, the AI sector is the eighth-best performer among the 22 sectors tracked by the platform in terms of mcap-weighted returns.
Source: Defillama
The AI sector saw an mcap-weighted gain of 13.2%, whereas the leading sector (CEX tokens) achieved a 15.7% mcap-weighted gain.
Overall, things are looking up for the sector, but the weeks ahead will likely see similar volatility.
AI News Roundup
As one of the most rapidly developing industries, there is never a lack of important developments to keep tabs on.
Here, we’ve collected an assortment of the most significant recent updates to get you up to speed:
Kaito AI and Founder Social Media Hacked: On March 15, Kaito AI and founder Yu Hu's X (formerly Twitter) accounts were hacked. Hackers falsely claimed Kaito wallets were compromised, aiming to induce panic selling after opening short positions on KAITO tokens. The team swiftly regained control, confirming wallet security.
Morpheus To Host AI Builder Conference in Austin, Texas: From April 22-24, 2025, Morpheus will hold its first MOR Agents Builder Event in Austin, Texas, uniting developers and researchers to advance decentralized AI technologies. Participants can present AI agents to potential investors, accessing funding via Morpheus' smart contracts.
Virtuals Protocol Revenue Down More Than 98%: Virtuals Protocol's daily revenue has fallen by 98.6%, from over $1 million on Jan. 2 to under $22,000 by March 16. This decline is attributed to reduced demand for AI agents, decreased wallet activity, and fewer new agent launches. (source)
Google Introduces 'AI Mode' To Enhance Search Experience: Google's new 'AI Mode' integrates the advanced capabilities of Gemini 2.0 with Google's information systems, offering users AI-generated summaries and real-time data within search results. This feature aims to provide more comprehensive and personalized responses, enhancing the overall search experience. (source)
Sesame Releases Open-Source AI Model Behind Virtual Assistant 'Maya': On March 13, 2025, AI startup Sesame unveiled CSM-1B, the foundational model powering their virtual assistant, Maya. This 1-billion-parameter model, licensed under Apache 2.0, enables developers to create advanced voice applications, democratizing access to sophisticated voice AI technology.
>> That’s all for this week’s AI recap. Join us next week for more AI news, updates, and analyses!
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