The crypto market may be due for another narrative shift as meme coins prepare for a potential resurgence, while AI agent tokens continue to see declining interest.

AI agents took the stage in late 2024, sidestepping meme coins as analysts shifted their gaze to altcoins with real-world value rather than speculative assets.

AI Tokens Decline, Meme Coins Poised for Resurgence

Recent data from Dune reveals that only 6-7 AI agent tokens are being created daily on Virtual, a staggering 99.5% drop from their peak in December last year. The sharp decline reflects waning enthusiasm for AI agent tokens, even as the broader AI narrative remains a dominant theme in the market.

Despite this downturn, some analysts remain optimistic about the long-term potential of AI-powered crypto projects. As BeInCrypto reported, new AI agent launches show mixed signals, with some sectors seeing renewed activity.

Specifically, some, such as VIRTUAL, AI16Z, and AIXBT, have experienced gains in the last seven days. Meanwhile, others are still in a downtrend, like FAI, down 28%, and TRAC, down 19%.

Amidst these mixed signals, data on Cookie.fun shows the total market cap of crypto AI agent coins has dropped to $6.95 billion. None of the AI agent tokens has surpassed $1 billion individually on market cap metrics.

Industry experts have also highlighted how AI agents are poised to transform the workplace, further cementing artificial intelligence’s role in the digital economy. However, the recent slump in AI token creation suggests immediate market demand has cooled.

Meanwhile, the meme coin sector is experiencing its upheaval. Solana-based token launchpad Pump.fun, has been removed from the top 10 highest revenue-generating protocols in the last 24 hours.

“Pump.fun gets kicked out of the top 10 highest revenue-generating protocols in the last 24 hours as the number of bonded meme coins is plummeting to zero,” SOL ecosysten commentary The Solana Post noted.

Yet, meme coins might not remain in the shadows for long. AI mindshare, which hit over 70% last month, has since dropped to 32%, indicating a shift in market focus.

Why Meme Coins May Be Primed For Recovery

With the US SEC (Securities and Exchange Commission) recently announcing that meme coins are not classified as securities, industry participants anticipate a revival in the sector’s trading activity.

“SEC just officially ruled meme coins are not securities. This is about to bring massive on-chain volume. The trenches are about to get wild,” wrote Lynk, a popular user on X.

According to the user, Solana (SOL) could benefit from the prospective meme coin comeback. This assumption is based on the sector’s heft of Solana-based meme coins. The logic is that if meme coins stage recovery, traders and speculators would pour liquidity into the ecosystem, buying SOL to participate in launches on Pump.fun. This would potentially increase SOL’s demand and, in turn, its price.

Meanwhile, the SEC’s stance on meme coins represents a significant development for the sector. As BeInCrypto highlighted, the ruling removes a key regulatory uncertainty that has weighed on speculative tokens. The move is expected to encourage a fresh wave of meme coin projects and speculative trading, potentially bringing back the fervor seen in previous cycles.

Furthermore, the dYdX Foundation CEO Charles D’Haussy commented on the future of meme coins under Donald Trump. He acknowledged their impact on the crypto market and the broader financial ecosystem.

“I think they [meme coins] are a very good tool for people to show their interest, to show their support. I can imagine that in the future, people will buy meme coins, and they will not be called meme coins anymore,” D’Haussy told BeInCrypto.

As Bitcoin teases with a bear cycle, the divergence between AI agents and meme coins highlights shifting investor sentiment. While AI agents still command significant mindshare, their market dominance has weakened, potentially allowing meme coins to reclaim the spotlight.

The regulatory clarity provided by the SEC could catalyze increased meme coin activity. For now, however, the crypto market remains in flux.

Permissionless liquidity layer Orderly has announced the integration of its omnichain infrastructure with Berachain.

Berachain, which launched its BERA token recently, is a Layer-1 (L1) blockchain powered by a novel Proof-of-Liquidity consensus mechanism.

Orderly Teams Up with Berachain to Enhance Cross-Chain Liquidity

Integrating with Berachain indicates Orderly’s move to support high-performance blockchains at an early stage. Notably, Orderly currently supports a broad range of Ethereum Virtual Machine (EVM) and non-EVM chains, including Ethereum, Polygon, Arbitrum, Optimism, Base, Mantle, and Solana.

The latest development builds on this synergy, pushing toward ensuring DeFi builders and traders can seamlessly access cross-chain liquidity. Specifically, decentralized exchanges (DEXes) and perpetual protocols within the Berachain ecosystem will access deep cross-chain liquidity.

It comes as Orderly boasts the backing of over 20 professional market makers, including Wintermute and Riverside. This backing signifies deep market depth and tight spreads to ensure an optimal trading experience for DeFi users.

“Berachain’s Proof-of-Liquidity model represents an evolution in blockchain consensus, directly aligning network security with DeFi liquidity. Integrating Orderly’s omnichain liquidity layer adds the final piece to the puzzle, empowering Berachain projects to rapidly go from zero to one. With endless liquidity and reliable trading infrastructure taken care of, Berachain builders are free to focus on creating awesome apps that users will love,” Orderly Co-Founder Ran Yi stated in a statement shared with BeInCrypto.

Meanwhile, the Berachain L1 blockchain has gained rapid traction since its recent launch, which was marked by the introduction of its native token, BERA, on Binance. The blockchain’s Proof-of-Liquidity (PoL) model incentivizes validators by linking network security with liquidity provisioning.

Through its integration with Orderly, projects on Berachain can now access Orderly’s omnichain order book. This means eliminating liquidity fragmentation and enhancing trading efficiency.

Berachain’s Post-Launch Success and Challenges

Since its launch, Berachain has surged in total value locked (TVL), crossing $3 billion and positioning itself as the sixth-largest blockchain in DeFi. Notably, it has surpassed Base layer-2 (L2), data on DefiLlama shows.

This rapid growth demonstrates a strong interest in the network’s novel consensus model and DeFi ecosystem. However, despite this success, Berachain has encountered challenges common to new blockchains, including price volatility and selling pressure.

Recent data suggests that BERA, the native token of Berachain, has faced increased sell-offs post-launch. Analysts point to liquidity concerns and profit-taking by early adopters after its recent crypto airdrop as key factors driving market fluctuations.

Additionally, controversy has surrounded Berachain’s co-founder, accused of dumping tokens and receiving a large airdrop. BeInCrypto reported that this raised concerns over fair token distribution and market manipulation.

Despite these issues, some analysts remain optimistic about Berachain’s long-term potential. BERA has rallied nearly 15% recently, with predictions that Berachain price could reach $9 if bullish momentum continues.

For most of February, the crypto market trended sideways, but this week, activity has plunged due to the impact of Donald Trump’s war trades. The downturn triggered over $800 million in liquidations in the past 24 hours as traders struggled with the volatility.

Despite the pullback, crypto whales have continued to accumulate some coins, positioning themselves for potential gains in March. This analysis examines some of these assets.

Bitcoin (BTC)

BTC broke below a key support line this week, which had kept its price within a range since the beginning of February, and fell to multi-month lows. The market’s leading coin now trades at $79,610, a price low last recorded in November. 

BTC whales have taken advantage of its discounted prices to strengthen their holdings, as reflected by the surge in the coin’s large holders’ netflow. According to IntoTheBlock, the metric has rocketed by 23% in the past seven days.

Large holders are whale addresses that hold more than 0.1% of an asset’s circulating supply. Their netflow tracks the difference between the inflows and outflows of an asset held by these major investors. 

When it rises like this, it indicates that large holders are accumulating more of the asset, suggesting increased confidence and potential upward price pressure. This trend may also prompt BTC retail traders to increase their buying pressure.

If this continues, it will reduce the coin’s supply in circulation and drive up its value in March, possibly back above $95,000.

The Sandbox (SAND)

Metaverse-based token SAND has also seen renewed interest from whales this week as the market anticipates a broader recovery in March. The token trades at $0.29 at press time, noting a 43% decline over the past month.

According to Santiment’s data, over the past week, whales holding between 100 million and 1 billion tokens have accumulated 180 million SAND valued above $52 million at current market prices. At press time, this cohort of investors holds 1.93 billion SAND tokens, its highest count since June 2024. 

The surge in SAND whale holdings is due to its current undervalued status, as reflected by readings from its market value to realized value (MVRV) ratio. As of this writing, the altcoin’s 7-day and 30-day MVRV ratios are -9.72 and -23.11, respectively.

Historically, negative MVRV ratios are a buy signal. They indicate that the asset trades below its historical acquisition cost, presenting a buying opportunity for traders looking to buy the dip.

Hence, if this whale accumulation continues, it could push SAND’s price past the $0.35 mark in March. 

Optimism (OP)

Layer-2 (L2) token OP is another asset that the whales are strategically acquiring for gains in March. IntoTheBlock’s data has revealed a 240% surge in its large holders’ inflow in the past seven days. 

OP’s value has dipped 8% during that period, indicating that its whales have increased their inflows despite the price drop. 

When large holders increase their inflows, they are transferring significant amounts of an asset into their wallets. This is generally seen as a bullish signal, as it suggests confidence in the asset’s future price movement and potential for upward momentum.

If this continues into March, it could drive OP’s price to $1.52.