Deepseek’s turnout causes panic: AI cryptos lose up to 21% of value

The Cryptomarkt has received a big blow, with a total decrease in the market cap of all cryptos by 7.7% in the last 24 hours. However, what is particularly striking is that AI-related altcoins are the hardest affected. According to Data Van Coingecko, the total market cap from AI-Tokens fell by no less than 13.8% in the same period, to a current level of $ 35.9 billion.

The bearish sentiment is fed by the rise of Deepseek, a Chinese startup that impresses with innovative and efficient AI models. These developments not only put pressure on the traditional tech sector, but also the cryptomarkt.

Large losses for AI-altcoins

AI-Tokens such as Near Protocol (Near) and Artificial Superintelligence Alliance (FET) have been hit hard, with falls of 11.5% and 12.3% respectively in the last 24 hours. However, one of the biggest losers is Virtual Protocol (Virtual), which lost no less than 21.4% of its value in one day.

Deepseek surprises the AI ​​market

Deepseek, founded in 2023, has attracted attention worldwide with its efficient AI models. Recent demonstrations show that the Deepseek model provides performance that is comparable to the best models of OpenAi, but then at a fraction of the costs. Under the leadership of CEO Liang Wenfeng, the company has chosen an open-source approach and launched a popular chatbot in January that supplies the download lists worldwide.

The success of Deepseek raises questions with AI-hardware experts about the need for expensive AI chips and GPUs. This development has led to a panic on the stock exchange, where tech shares such as Nvidia suffered considerable losses. However, the impact extends further, because the cryptomarkt also feels the consequences of this shift in the AI ​​industry.

Ali Yılmaz, a technology executive, stated: “The approach to Deepseek could establish a new efficiency standard in the AI ​​field.”

AI altcoins under pressure

The sharp falls in the cryptomarkt, and in particular in AI-altcoins, are the result of uncertainty. Investors are struggling with the idea of ​​how Deepseek with limited resources could develop such an advanced AI model. This puts the earnings models of companies such as Nvidia under pressure and casts shadows on crypto projects such as internet computer (ICP), which depends on the intensive use of hardware such as GPUs and storage. These projects suddenly seem less relevant in a world where efficiency becomes more important than brutal strength.

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