Crypto startups tapping AI hype raise $2bn. Here’s why some are unconvinced

Core Insights - The artificial intelligence-powered crypto sector is projected to grow fivefold to reach a valuation of $1 trillion within the next decade, driven by the entry of legitimate projects [1] - AI is expected to serve as a new interface for blockchains, making it accessible to non-technical users and facilitating on-chain transactions [2] - The sector, currently valued at approximately $20 billion, is anticipated to revolutionize crypto trading [2] Investment Trends - AI-linked crypto startups raised nearly $2 billion across 261 deals in 2025, following over $2.5 billion in 2024, totaling almost $13 billion in funding since 2020 [3] - Startups at the intersection of crypto and AI raised over $550 million in the first nine months of the year, marking a 7% increase from the total raised in 2024 [4] Market Performance - The total value of the AI-linked tokens market surged by 14% over the past 30 days, reaching $35.5 billion, which is about half of the $70 billion record set in December [6] - Companies like Nvidia and Microsoft have significantly contributed to stock market growth, fueled by the hype surrounding AI [5] Future Projections - The market is expected to double in size, potentially reaching $40 billion by 2026, with the emergence of innovative AI applications on-chain [7]