AI tokens lose momentum as creation rate falls 99.5% since December. Meanwhile, memecoins are making a sneaky comeback

Despite AI's sustained dominance in tech discourse, the crypto sector's appetite for AI agent tokens seems to be cooling fast.

AI agent tokens, once the darlings of the crypto world, have taken a nosedive, with daily token creation collapsing by 99.5% from December to just 6-7 new tokens, according to recent data from Dune Analytics.

As enthusiasm for AI wanes and traders shift gears, Solana's [SOL] ecosystem seems poised to cash in on the ebbing tide of memecoin speculation. However, the question remains - Is this a flash in the pan, or are we witnessing the rebirth of memecoin mania?

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Virtual's AI token launch rate has collapsed by 99.5% from its December peak, now averaging just 6-7 new tokens daily.

The sustained hype surrounding AI in the tech sector has yet to fully translate into unyielding demand for AI agent tokens in the crypto domain.

Indeed, market data seems to be reflecting this shift - while some AI agent tokens like VIRTUAL, AI16Z, and AIXBT have managed minor gains, the broader sector has been struggling. The total AI agent token market cap shrunk to $6.95 billion, with projects like FAI and TRAC suffering double-digit weekly losses.

This suggests that while AI's long-term potential remains evident, the short-term speculation phase might just be fizzling out.

As speculation cools on AI tokens, memecoins are slowly emerging from the shadows.

With interest in AI-driven speculation now falling to 32%, marking a substantial decrease from last month's 70% dominance, traders are pivoting towards different assets.

Dogecoin [DOGE] currently leads in social volume among memecoins, with peaks in activity from mid-January through early February 2025 aligning with notable whale transactions. Shiba Inu [SHIB] and Pepe [PEPE] have followed similar patterns, though PEPE's whale activity has been more sporadic.

As the dust settles on the AI token craze, could memecoins be set for a return to glory? Only time will tell.

Earlier this week, the SEC ruled that memecoins do not qualify as securities, removing a long-standing regulatory overhang. The decision clarifies that memecoins, typically driven by social trends and speculation, are not registered under the Securities Act of 1933.

According to the SEC’s Division of Corporate Finance, memecoins function more like collectibles, with value dictated by cultural relevance rather than issuer-backed financial expectations.

This ruling could unlock new waves of liquidity, spurring speculative launches and increased trading activity. However, the SEC warned against fraudulent projects, emphasizing that misleading investors or disguising financial products as memecoins to skirt regulations may still invite enforcement action.

With memecoins now free from SEC scrutiny, speculation could reignite, bringing fresh liquidity to Solana's ecosystem.

Known as the dominant blockchain for memecoin launches, Solana stands to benefit as traders flock to platforms like Pump.fun, where new tokens are frequently emerging.

An enthusiastic user on X anticipated a surge in on-chain activity, remarking, "This is about to bring massive on-chain volume. The trenches are about to get wild..."

Historically, Solana has rallied during memecoin frenzies, with increasing trading volumes driving up demand for SOL.

Now, as AI tokens lose momentum, the stage is set for another shift - one where memecoin speculation could once again take center stage.