The artificial intelligence (AI) agents crypto sector is facing continued losses, with its total market capitalization dipping below $5 billion amid a broader decline. 

The ongoing slump has raised concerns about the sector’s stability, sparking debate regarding its long-term potential. 

AI Agents Face Major Market Slump

This downturn follows a period of rapid growth. The majority of the top AI agent tokens saw substantial gains, peaking between December and January. Nonetheless, that momentum has now reversed.

The decline has affected nearly all AI tokens, with most following a similar trajectory in the crypto market. 

“The sector has declined 77.5% from its peak,” Whale Insider posted on X.

According to the latest data, the sector suffered a 6.8% loss in the past 24 hours alone, bringing its total market capitalization down to $4.4 billion. Additionally, all of the top 10 AI tokens have recorded double-digit losses over the past week, signaling a widespread correction.

Further insights from Cookie Fun reveal that the downturn is spread across multiple blockchains. Solana’s (SOL) AI Agents sector has seen a 4.3% decline over the past day. Its market capitalization stood at $1.1 billion.

Similarly, Base’s AI sector has dropped to $736.6 million, marking a 5.8% loss over the same period.

Other blockchain networks hosting AI-related tokens have been hit even harder, with their collective market cap shrinking to $722.2 million, down a staggering 15.2% in the last 24 hours. 

The Future of AI Agents: Still a Game-Changer?

While the sector’s sharp decline has raised concerns about its long-term viability, Guy Turner, founder of Coin Bureau, argues that it is still too early to dismiss the potential of AI Agents.

“With the right catalyst, not only could it recover, but it could even surge to new heights,” Turner said.

He believes AI Agents could see renewed interest as AI technology advances, drawing fresh adoption. Turner pointed to retail engagement, regulatory clarity, and institutional investment as key growth drivers. 

According to him, support from governments, tech firms, and financial institutions could legitimize the sector, shifting it from speculation to a major market force.

That’s not all. Turner also acknowledged the possibility of a meme coin resurgence acting as a short-term catalyst. While AI Agent tokens are sometimes dismissed as “meme coins with a chatbot attached,” he believes this perception oversimplifies their true potential. 

“AI agents are clearly a disruptive force, and we don’t yet know exactly how much value they can provide but you can bet your bottom dollar that tech companies everywhere are going to do whatever it takes to find out,” he added.

The US Department of Housing and Urban Development (HUD) manages billions of dollars in aid and insures over a trillion dollars in mortgages. Now, it is considering using blockchain to track grant recipients’ spending.

The agency may also explore stablecoins as a financial tool within its system. However, this proposal has sparked intense debate, especially as HUD faces challenges in financial management efficiency.

HUD’s Crypto Consideration Raises Concerns of a 2008-2009 Crisis Repeat

According to ProPublica, HUD is looking to leverage blockchain—the core technology behind cryptocurrencies—to improve oversight of grant funds.

A HUD official stated that the idea of using blockchain and stablecoins is being driven by Irving Dennis, the agency’s Deputy Chief Financial Officer. Dennis, who previously worked as a partner at the global consulting firm EY, believes the technology could enhance transparency and efficiency in grant monitoring. This area has historically been complex and prone to waste.

Additionally, ProPublica reported that HUD officials held at least two meetings last month to discuss the blockchain proposal. Staff from the Office of the Chief Financial Officer (CFO) and the Office of Community Planning and Development (CPD) attended these meetings.

During the discussions, CPD explored a “proof of concept” pilot project. In this project, blockchain would track funding for a CPD grant recipient.

“We might learn something from this, especially if the federal government is moving toward stablecoin adoption in the future,” one official who attended the meeting said.

However, ProPublica quoted a HUD employee expressing concerns: “People are trying to introduce another unregulated security into the housing market as if 2008 and 2009 never happened.” Another official compared cryptocurrency to “Monopoly money,” implying it could become worthless.

D.O.G.E. Highlights Internal Financial Issues at HUD

Recently, the Department of Government Efficiency (D.O.G.E.) shed light on internal financial problems at HUD, raising doubts about the agency’s ability to manage new technology. D.O.G.E. revealed that HUD had just completed a software license audit, uncovering severe waste.

“HUD completed the same audit. Initial findings on paid software licenses: 35,855 ServiceNow licenses across three products; only using 84. 11,020 Acrobat licenses with zero users. 1,776 Cognos licenses; only using 325. 800 WestLaw Classic licenses; only using 216. 10,000 Java licenses; only using 400. All are being fixed,” D.O.G.E. stated.

HUD’s official press account responded to D.O.G.E.’s findings, saying the agency is reviewing every dollar spent and working closely with D.O.G.E. to address taxpayer money waste.

As of this writing, HUD’s official X account has not made any announcements regarding blockchain trial discussions.

Mark Carney, the former governor of both the Bank of England and the Bank of Canada, is poised to become Canada’s next prime minister. However, he has long been skeptical and strongly critical of Bitcoin (BTC).

On March 9, Carney secured an overwhelming victory with 85.9% of the vote. He is expected to assume office in the coming days.

Mark Carney’s Views on Bitcoin

Carney will become Canada’s next Prime Minister, replacing Justin Trudeau, who resigned in January 2025 after nearly a decade in power.

Although Carney has never held a seat in Parliament, his experience managing economic crises and international reputation have garnered significant support within the Liberal Party.

However, Carney’s rise to Canada’s new Prime Minister position does not appear to be a positive signal for the crypto market. For years, he has expressed deep skepticism and sharp criticism of Bitcoin (BTC) and other decentralized cryptocurrencies. He formed his stance during his tenure as Governor of the Bank of England and has reiterated it in the years since.

“Canada’s new Prime Minister Mark Carney, a known critic of Bitcoin, previously labeled it [BTC] as having serious deficiencies,” said X user EdGeraldX.

Specifically, in a 2018 speech on the Future of Money, Carney assessed that Bitcoin has “serious deficiencies” due to its fixed supply cap, which leads to price instability.

“The fixed supply of Bitcoin has sparked a global speculative frenzy, encouraging the proliferation of new cryptocurrencies,” he stated.

He likened Bitcoin to a “criminal act of monetary amnesia,” arguing that recreating a digital gold standard was a historical mistake. Carney believes Bitcoin and other cryptocurrencies are “poor short-term stores of value,” failing to meet the basic criteria of money, such as stability and usability in transactions.

In 2018, he warned that Bitcoin threatened financial stability if left unregulated, calling for strict oversight to curb illegal activities like money laundering and terrorism financing.

Carney Prefers CBDCs Instead

In contrast, Carney enthusiastically advocates for Central Bank Digital Currencies (CBDCs) while opposing Bitcoin. This view is somewhat similar to that of Indian regulators. He argues that CBDCs could expand banking access for individuals and businesses while enabling central banks to combat terrorism and economic crime.

“Carney calls Bitcoin’s fixed supply a crime, supports CBDCs, and now controls policy for a $1.9 trillion economy,” shared an X user.

Carney’s views on Bitcoin and cryptocurrencies align with and are arguably more rigid than those of his predecessor. In September 2022, Trudeau hit out at Pierre Poilievre, a pro-crypto politician chosen to lead Canada’s Conservative Party.

Carney assumes office as Canada faces a trade war sparked by US President Donald Trump’s tariff policies. The US has officially imposed a 25% tariff on Canada after suspending it in early February.

Carney’s anti-Bitcoin stance may lead to stricter regulations to control cryptocurrencies. He might focus on anti-money laundering measures and investor protection, similar to the approach he advocated at the Bank of England. This could affect the ETFs operating in Canada like the BlackRock’s Bitcoin ETF or 3iQ’s Solana ETF.

Additionally, Canada may soon develop a digital Canadian dollar, potentially diminishing the role of Bitcoin and altcoins in the economy.