AI Coins Crash Big As DeepSeek Threatens US AI Dominance

By / / Crypto News, Daily News
AI Coins Crash Big As DeepSeek Threatens US AI Dominance

Overview:
DeepSeek, a Chinese AI startup, has been making significant waves recently, creating ripples in both the tech and cryptocurrency space. As a result, the AI coin market has experienced turbulence. Here’s an overview of the situation and its implications:

Table Of Contents
  1. DeepSeek's Rising Popularity
  2. Effect on AI Coins Prices
  3. Experts' Take: A Buy-the-Dip Opportunity
  4. Conclusion

DeepSeek’s Rising Popularity

DeepSeek is gaining attention for its low-cost infrastructure, which allows the company to develop cutting-edge AI technology at a fraction of the cost compared to US-based giants. This has positioned DeepSeek as a serious competitor to established AI players like OpenAI.

Impact on AI Companies

  • DeepSeek’s success has made a dramatic mark by surpassing OpenAI’s ChatGPT in terms of app downloads, signaling its growing influence in the industry.

Threat to US Dominance

  • The startup directly challenges the US AI tech dominance, a situation that has caused concern in Silicon Valley and across the broader AI market.

Effect on AI Coins Prices

DeepSeek’s rise has rattled the AI crypto market, causing many AI-related tokens to experience a sharp decline.

Price Drop

  • The prices of popular AI coins, such as Near Protocol (NEAR), Render (RENDER), Internet Computer (ICP), and Filecoin (FIL), have fallen by 8-10% in the past 24 hours.

Market Cap Decline

  • The total AI coin market cap has dropped by over 7.66%, falling below $44 billion.

Broader Market Influence

  • This decline coincides with a broader crypto market downturn, with Bitcoin also facing a price drop to $100K levels.
  • The market correction has caused many investors to sell off, adding to the turbulence.

Experts’ Take: A Buy-the-Dip Opportunity

While the price corrections are recent, some experts believe that the decline in AI coin prices presents a buy-the-dip opportunity.

Long-term Potential

  • With DeepSeek becoming more affordable, making AI applications more accessible, many experts believe the rise of DeepSeek may actually support AI adoption across industries.
  • These AI coins are poised for a price surge as the increased demand for AI technologies driven by DeepSeek broadens its impact.

Conclusion

While the AI crypto market is currently experiencing a slump due to the fear caused by DeepSeek’s rise, the long-term prospects remain bright. DeepSeek’s disruption of US AI dominance may contribute to growth in AI-related crypto assets, making this a good entry point for those willing to ride out the volatility.

The current recession could be a short-term phenomenon, and AI coins might rebound stronger as DeepSeek’s cost-effective solutions gain momentum in the global market.

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