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Date: 2025-02-26 07:07:20
In comparison to Bitcoin, all other cryptocurrency sectors have had a disappointing performance this year, with declines ranging from almost 50% to as high as 85%.
Delphi Digital's data reveals that various crypto sectors, including AI frameworks, Agent-based projects, meme coins, and others, have experienced a downturn this year. These key sectors have performed worse than the industry's benchmark assets, which are Bitcoin (BTC), Ethereum (ETH), and Solana (SOL).
Based on the data, the average decline for AI frameworks and platforms is the most severe among all sectors, falling by 84.05%. Meanwhile, Agent-based projects have decreased by 70.27% on average compared to last year. The meme coin sector has also seen a significant decline, plunging by 51.74% this year, much to the disappointment of meme coin traders.
These findings are unexpected, as many traders were optimistic that AI-based projects and the meme coin sector would be at the forefront of the cryptocurrency market in 2025. A Binance survey conducted last December showed that nearly 45% of users believed that AI projects and meme coins would emerge as strong contenders in the coming year.
Furthermore, the gaming infrastructure sector also experienced a similar loss of 51.54% this year, followed by the modular solutions sector which is down 47%. The AI and DePIN sector also took a hit this year, with a loss of 42.41%. The Layer 1 sector appears to be faring better with only a 26% decrease in performance.
On the other hand, despite experiencing a significant price drop and falling below the $90,000 threshold, Bitcoin's performance has managed to limit the damage. At present, Bitcoin's performance by return percentage has decreased by 5.23%.
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In comparison to other benchmark assets, such as Ethereum and Solana, Bitcoin's performance has sustained the least damage. Meanwhile, Ethereum has seen a 25.5% decline in returns, and Solana has suffered a similar loss of 24.8% in performance. On average, the benchmark assets have decreased by 18.53% in returns. Although this is not a positive sign for the cryptocurrency market, the benchmark assets seem to be performing much better than all the other crypto sectors.
On Feb. 25, the cryptocurrency market suffered a significant crash after Bitcoin fell below $90,000 for the first time since November 2024. Crypto liquidations have surpassed $1 billion, with long positions accounting for the majority of liquidations.