The cryptocurrency market experienced a sharp downturn as artificial intelligence and big data-related tokens shed $4.69 billion in market capitalization over three days.
The market, which stood at $38.82 billion on Sept. 30, fell to $34.13 billion by Oct. 3, raising questions about the anticipated “UPtober” trend that investors hoped would bring a market recovery.
Despite October’s historical trend of being a favorable month for traders, this year is shaping up to be “Octo-bear” rather than “UPtober.”
Chart depicting market cap and volume of AI and big-data tokens. Source: CoinMarketCap
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AI and big data tokens underwater
Among the leading AI and big data tokens, Near Protocol (NEAR) had the steepest decline, with a 14.88% decrease over the past seven days. At the time of writing, the token was priced at $4.61.
Other top-performing tokens, like Bitensor (TAO) and Internet Computer (ICP), also experienced substantial price declines, shedding 9.37% and 13.35%, respectively, over the same period.
This trend has affected the broader AI and big data market, with tokens like Render (RNDR) down 13.64% and Artificial Superintelligence Alliance (FET) down 16.68%.
Top coin performance of AI and big-data tokens. Source: CoinMarketCap
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UPtober fails to deliver
Historically, October has been a period of solid gains and market stability, with many expecting Bitcoin (BTC) and altcoins to see upward momentum throughout the month.
However, 2024 has defied that trend, with almost $5 billion wiped from the AI and big data token market cap just three days into October.
The broader crypto market has also seen a downward trend, driven by geopolitical factors, including the ongoing conflict in the Middle East, regulatory challenges and macroeconomic concerns.
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It’s not so bad after all
Despite the downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion.
Considering the shift in pace from three months ago, the AI and big data token market is up more than $13 billion, essentially trivializing the October loss in market cap.
While the long-term trend for BTC in the fourth quarter and early 2025 seems optimistic, recent signs indicate there could be some short-term volatility in October.
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