The cryptocurrency market experienced a sharp downturn as artificial intelligence and big data-related tokens shed $4.69 billion in market capitalization over three days.

The market, which stood at $38.82 billion on Sept. 30, fell to $34.13 billion by Oct. 3, raising questions about the anticipated “UPtober” trend that investors hoped would bring a market recovery.

Despite October’s historical trend of being a favorable month for traders, this year is shaping up to be “Octo-bear” rather than “UPtober.”

AI tokens lose $4.69B market cap in 3 days — When ‘UPtober?’ image 0

Chart depicting market cap and volume of AI and big-data tokens. Source: CoinMarketCap

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AI and big data tokens underwater

Among the leading AI and big data tokens, Near Protocol ( NEAR ) had the steepest decline, with a 14.88% decrease over the past seven days. At the time of writing, the token was priced at $4.61.

Other top-performing tokens, like Bitensor ( TAO ) and Internet Computer ( ICP ), also experienced substantial price declines, shedding 9.37% and 13.35%, respectively, over the same period.

This trend has affected the broader AI and big data market, with tokens like Render ( RNDR ) down 13.64% and Artificial Superintelligence Alliance ( FET ) down 16.68%.

AI tokens lose $4.69B market cap in 3 days — When ‘UPtober?’ image 1

Top coin performance of AI and big-data tokens. Source: CoinMarketCap

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UPtober fails to deliver

Historically, October has been a period of solid gains and market stability, with many expecting Bitcoin ( BTC ) and altcoins to see upward momentum throughout the month.

However, 2024 has defied that trend, with almost $5 billion wiped from the AI and big data token market cap just three days into October.

The broader crypto market has also seen a downward trend, driven by geopolitical factors, including the ongoing conflict in the Middle East, regulatory challenges and macroeconomic concerns.

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It’s not so bad after all

Despite the downturn, AI tokens are still performing significantly better than in July, when the total market cap was around $20 billion.

Considering the shift in pace from three months ago, the AI and big data token market is up more than $13 billion, essentially trivializing the October loss in market cap.

While the long-term trend for BTC in the fourth quarter and early 2025 seems optimistic, recent signs indicate there could be some short-term volatility in October.

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