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TAO and NEAR lead the decline of over 20%, AI crypto sector faces a systemic correction
February 6 News, the artificial intelligence concept in the cryptocurrency market experienced a collective sell-off, with mainstream AI crypto assets such as TAO, NEAR, ICP, and RENDER generally falling more than 20%, indicating that funds are rapidly withdrawing from high-valuation sectors. Data shows that Bittensor (TAO) dropped 23% in a single day, trading at approximately $164; Near Protocol declined by 25.4%; Internet Computer and Render also weakened simultaneously, with market sentiment clearly cooling.
In the past 24 hours, the overall market capitalization of AI cryptocurrencies shrank by over 42%, down to about $12 billion, with no signs of stabilization in the short term. The core reason for this correction stems from the traditional technology sector. Alphabet and Amazon's latest earnings reports disclosed that by 2026, AI infrastructure investment could reach as high as $500 billion, raising concerns among investors about the significantly prolonged profit cycle.
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