**The AI Token Market Faces a Catastrophic Year-End Collapse**

The AI-focused cryptocurrency sector witnessed a dramatic reversal in 2025, with market data revealing a devastating downturn. According to CryptoNews reports, tokens concentrated in the artificial intelligence space saw their combined value plummet by approximately 75% throughout the year, resulting in roughly $53 billion wiped from the market.

**Accelerating Losses in the Final Quarter**

The severity of the selloff intensified markedly as 2025 drew to a close. The AI token market experienced mounting pressure in November, with investors liquidating positions that erased approximately $4 billion in market capitalization. December proved even more catastrophic, as the sector hemorrhaged a staggering 10 billion dollars in just one month—signaling panic and accelerated portfolio rebalancing across the space.

**The Top Performers Turned Worst Performers**

When examining the market's largest AI-related assets, the damage becomes unmistakable. Among the top ten tokens by market cap, eight suffered losses exceeding 70% over the twelve-month period. The Artificial Superintelligence Alliance led the decline with an 84% drop, while Render and The Graph both fell by 82%. Even The Virtuals Protocol, which had surged an extraordinary 3500% in 2024, retreated 73% by year-end—erasing most of its previous gains.

Other significant projects including Injective, Filecoin, Internet Computer, and NEAR Protocol all experienced substantial declines, reflecting a broader market repricing of AI tokenomics and utility expectations. This widespread deterioration suggests investors fundamentally reassessed the value proposition of AI-focused digital assets as the year concluded.