Smart money shows signs of buying back AI agent tokens

Whale buyers are rolling over their funds into AI agent tokens, boosting inflows into the sector. Smart money is choosing some of the top AI agents, reallocating SOL to buy new positions. 

The AI agent sector is making a tentative comeback, as whales and smart money is rolling over to the most promising agent tokens. Inflow of liquidity was noted from smart money wallets, as the sector lost on average 70% of its value in January. At this point, some traders are buying the dip to make the best of an eventual recovery. 

One whale allocated $3.53M to buy AI Rig Complex (ARC) and $3.08M for AI16Z. Soon after the purchase, the tokens appreciated slightly, with ARC valued at $3.55M and AI16Z reaching $3.124M. The whale accumulated the tokens from Orca, Meteora, and Raydium, as the AI agent tokens rely mostly on decentralized trading. 

AI agent tokens had a fast rise, leading to a series of high-profile listings on Binance. The initial rally on decentralized markets led to a crash after adding Binance trading pairs. The shift affected all the leading AI agent tokens, with ARC down by over 75% less than two weeks after listing, and AI16Z down more than 90% a month after the listing. 

AI agent tokens were created following the model of meme assets, which allowed holders to wait with significant paper gains, using Binance to cash out. The recent round of whale buying also waited for another dip, where previous stars like GRIFFAIN erased another 60% of their market cap. 

AI agent tokens as a whole recovered to a market cap of $7.7B, after a 17% expansion in the past 24 hours. The sector habitually achieved valuations at over $10B, peaking at around $17B. The rapid recovery shows AI agents may make a return after the first drawdown from selling pressure. AI agents are now trying to recover from a 39% price drop in the past 30 days, with rapid rallies for the last 24-hour period. AI agents on Solana and Base are outcompeting the Ethereum ecosystem when it comes to the creation of agentic personalities.

AI agent tokens bounce from recent lows

The overall recovery affected tokens individually, with ARC expanding by 100% this week to trade at $0.31. The token is setting its sight on previous all-time highs above $0.60, retesting its ability to rally. 

AI16Z showed signs of recovering from its lows, rising by 35% in the past day to $0.55. The token is still at the low end of a long slide from a peak above $2.37.

The trend of bouncing from the lows was also indicated by FARTCOIN, which remains a proxy for the AI space. The token recovered to $0.66 after peaking at $2.44 on January 20. In the past week, FARTCOIN expanded its holders by 7%, coinciding with the recovery. The only other agent to expand its holdings in the past week was FXN, signaling more buying near the asset’s all-time lows. FXN recovered to $0.01 after dipping under one cent. 

VIRTUAL also works as a proxy for interest in all AI agents. All other tokens from the Virtuals Protocol ecosystem rallied to a total valuation of $1.5B, led by VaderAI and Luna Virtuals. VIRTUAL itself recovered to $1.40, after becoming a top active token on DEXs and drawing in smart money. VIRTUAl and FARTCOIN were leaders in recent activity, underscoring the re-emerging narrative.

Older AI tokens also recovered by 8.4% as a whole in the past 24 hours, raising the sector’s valuation above $30B.

The AI agents narrative is growing its mindshare, with a boost from internal competition. AIXBT remains the leading and most influential agent, due to its social media presence. The success of AI agents depends on mindshare and engagement on social media, though once established, AI tokens could become possible trading positions for active whales. AI agentic personalities and their content remain key for the tokens’ popularity, while platform tokens are seen as the most liquid option to tap into the whole narrative. 

AI agent tokens slid after the peak market hype, as meme tokens and the launch of Official Trump (TRUMP) drew in the market’s liquidity. Now, as other trades slow down, AI agent tokens overall tend to bounce from their lows.  

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