AI Coins Crash As DeepSeek AI Shakes Up The Market

AI
coins,
including
NEAR,
NCP,
RENDER,
and
FIL,
saw
significant
drops
of
8-10%
today
as
China’s
AI
startup
DeepSeek
challenged
US
dominance
in
the
sector. 

China’s
AI
startup
DeepSeek
disrupted
the
market
by
creating
AI
models
that
cost
much
less
than
those
of
Silicon
Valley
giants.
AI
coins
decreased
sharply
during
the
early
hours
of
Monday’s
Asia
market.
This
shift
came
alongside
a
sharp
decline
in
Nasdaq
100
futures,
which
fell
330
points
during
Sunday’s
overnight
trading,
triggering
further
panic
in
the
market.

AI
Coins
Crash:
Is
There
A
Reason
For
The
Panic?

The
AI
coins
market
has
dropped
over
7%
in
the
last
24
hours,
with
the
total
capitalization
for
these
cryptos
falling
below
$44
billion,
according
to

CoinMarketCap. 

The
sharp
drop
is
primarily
due
to
the
sudden
rise
in
popularity
of
China’s
DeepSeek
AI
startup,
which
has
shaken
the
market
with
its
low-cost
infrastructure.
Built
using
chips
that
are
a
fraction
of
the
cost
compared
to
those
used
by
US
AI
companies,
DeepSeek
caused
a
major
market
shift. 

Despite
the
current
correction
in
AI
coins,
experts
from
the
decentralized
finance
artificial
intelligence
(DeFAI)
market
believe
it
presents
a
buy-the-dip
opportunity.
A
well-known
market
analyst,
Daniele,
believes
that
DeepSeek
will
actually
drive
further
growth
in
the
AI
Coin
industry.

“If
you’re
selling
AI
coins
due
to
DeepSeek
models
being
cheap
and
open
source,
they
are
actually
very
helpful
to
scale
AI
Apps
to
Millions
of
users
with
low-entry
barrier
pricing,
Daniele
said
in
a
Jan.
26
X
post.
“Is
the
best
thing
that
could
have
happened
to
the
industry,”
the
X
user
added.

If
you’re
selling
AI
coins
due
to

@deepseek_ai
models
being
cheap
and
open
source,
they
are
actually
very
helpful
to
scale
AI
Apps
to
Millions
of
users
with
low-entry
barrier
pricing.
Is
the
best
thing
that
could
have
happened
to
the
industry.

—
Daniele
(@danielesesta)

January
26,
2025

DeepSeek
AI
Disrupts
Market

The
Chinese
AI
startup
has
challenged
Silicon
Valley
giants.
While
companies
like
OpenAI
and
Anthropic
spend
over
$100
million
on
training
advanced
AI
models
like
GPT-4
or
Claude,
DeepSeek
surprised
many
with
similar
results
for
just
$6
million.

Furthermore,
DeepSeek
uses
AI
chips
that
are
less
advanced
than
those
employed
by
US
companies.

US
chip
stocks
have
dropped
as
the
DeepSeek
app
tops
the
Apple
Store
downloads.
Companies
like
Qualcomm,
Nvidia,
Arm,
and
Broadcom
are
down
2-7%,
coinciding
with
the
decline
in
AI
coins.

DeepSeek
Takes
On
OpenAI’s
Market
Dominance

The
Chinese
AI
startup
is
rapidly
gaining
attention,
ranking
as
the
top
free
app
on
the
Apple
App
Store.
Users
praise
the
app
for
being
easy
to
use
and
running
smoothly,
with
no
significant
problems
from
rate
limits.

This
started
a
discussion
about
its
possible
use
in
agentic
AI
systems.

Nvidia,
a
big
tech
company,
claims
Agentic
AI
is
the
next
big
thing
in
the
AI
industry,
suggesting
it
could
drive
many
future
advancements
in
the
field.
DeepSeek’s
entry
into
the
market
could
take
some
of
the
overall
market
share
away
from
OpenAI.

On
top
of
that,
last
week,
OpenAI’s
popular
product,
ChatGPT,
suffered
a
major
outage,
further
fueling
discussions.

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