Amid the increasing adoption of the crypto industry, AI altcoins have blossomed the most. This has happened because the industry is increasingly focused on artificial intelligence technology and related services. However, this category also suffered during the recent crypto market crash. Today, however, it seems different, as AI tokens like ARC, ai16z, and others are booming with price recoveries.
AI Altcoins Market Cap Surged 6% Today
Since 2024, the demand for AI altcoins has grown exponentially, driven by innovation in AI technology, the introduction of AI bots, the infusion of this technology on blockchain, and many other factors. However, the most significant bullish factor is Donald Trump’s hiring of Davis Sacks as the White House AI and Crypto Czar.
This announcement brought quite heavy rallies, but volatility took over soon, crashing the AI cryptos collective market cap. However, today is different, as the market cap has surged 6%, reaching $35.87B. This happened as the investor’s confidence returned to the market, resulting in a 15% surge in the trading volume.
Analysts anticipated such surges and recovery as artificial intelligence technology is constantly being developed, and better and better tools are entering the market. At one point, the DeepSeek AI launch crashed the crypto market due to its features, making people question AI bubble.
Interestingly, the crypto whales’ interaction played a significant role in today’s recovery trail, especially pushing popular AI cryptos like ARC and ai16z to witness an upward trend.
ARC and ai16z Price Skyrockets Amid Whale Buying
ARC, ai16z, and a few other AI altcoins are the day’s standout performers, as their values surged significantly. The CoinmarketCap data revealed that the ARC price has surged 77% today, currently trading at $0.3214 with a market capitalization of $321.52M.
More importantly, its trading volume hit $90.89M after a 113% surge, showcasing high investor activity. Meanwhile, ai16z surged 42% and is trading at $0.5879 with a market capitalization of $646.88M.
Like other AI cryptos, this happened with a 55% surge in the trading volume, currently at $264.18M. Amid all the factors pushing these cryptos, the whale’s involvement acted as the most significant bullish factor.
A recent Spotonchain X post revealed a single whale, identified as “8u6u3,” spending $7.42M on AI altcoins. This included the spending of 19,500 SOL, equivalent to $3.86M, to buy 12.511M ARC at an average price of $0.309.
The whale also spent 18,000 SOL ($3.56M) to buy 6.508M ai16z at an average price of $0.546. The Spotonchain post also revealed that this buying was a strategic plan, as the whale had withdrawn 38,139 SOL from the crypto exchange Coinbase several days ago.
Overall, the activity and strong institutional demand fueled the demand for these AI cryptos. However, will this gain persist or end with the crypto crash in altcoins alerted by analysts, concerns investors?
What’s Next?
Crypto analysts anticipate that AI altcoins recovery is just starting and likely to continue if the buyers’ dominance stays maintained. The biggest reasons behind this are artificial intelligence’s continuous revolution and the attention to this sector. However, as the crypto market’s sentiments remain bearish, the unpredictability is high, especially as there are high chances of sellers emerging to take the profit.
The post AI Altcoins Skyrocket: ARC Price Soars 77%, ai16z Up 42%, Here’s Why? appeared first on CoinGape.
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