AI Crypto Sector Sheds $2.8B as Prices Fall 12%

Edgen Crypto

·Feb 09 2026, 18:30

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Key Takeaways

The artificial intelligence (AI) cryptocurrency sector faced a sharp downturn, erasing significant value and signaling growing investor caution. The broad-based sell-off pushed several key tokens to their lowest prices in years, placing the entire category at a critical juncture.

The AI crypto sector's market capitalization plunged by $2.8 billion due to a widespread sell-off.
Prices across the sector dropped by an average of 12.1%, pushing tokens like TAO and NEAR to multi-year lows.
The decline reflects waning investor confidence and raises the risk of further cascading sell-offs if key support levels are broken.

AI Sector Bleeds $2.8B in Sharp 12.1% Correction

The artificial intelligence (AI) cryptocurrency sector experienced a significant sell-off on February 9, 2026, erasing $2.8 billion from its total market capitalization. The sector's value fell by 12.1%, signaling intensifying bearish pressure and a marked decline in investor appetite for AI-related tokens. This move extends a recent downtrend, deepening losses for holders in the category.

TAO and NEAR Tumble to Multi-Year Lows

Leading the downturn were prominent AI-linked tokens such as Bittensor (TAO) and NEAR Protocol (NEAR), which both collapsed to multi-year low price points. This steep decline tests critical technical support levels for these assets. A failure to hold these price floors could trigger cascading liquidations and accelerate capital flight from the once-hyped AI crypto narrative, as investors wait for signs of market stabilization before re-engaging.