Crypto Market Split: NFT Sector Plunges 7%+ While AI and SocialFi Show Divergence

The crypto market is displaying a pronounced bifurcation pattern, with different industries moving in opposite directions. According to market tracking data, the NFT space has emerged as the weakest performer, recording a 7.38% decline over the past day—significantly outpacing losses in other segments.

Weakness in Traditional Sectors, Strength in Emerging Verticals

The broader digital asset landscape shows a clear tier of underperformance. Beyond NFTs struggling, established industries like DeFi, PayFi, and Layer1 have all retreated, though at varying degrees. This pullback reflects a shift in capital flows away from certain infrastructure-heavy segments.

Meanwhile, two emerging ecosystems—AI and SocialFi—are bucking the downward trend. The AI sector climbed 0.40%, while SocialFi advanced 0.69%, demonstrating that investor interest remains concentrated in thematic growth areas despite overall market weakness.

AI and SocialFi: Tale of Two Momentum Players

Within AI, individual tokens show mixed dynamics. Bittensor (TAO) displayed relative stability amid market volatility, while 0G (0G) demonstrated more pronounced momentum shifts within the sector, underscoring the importance of differentiated project fundamentals.

SocialFi’s standout performer was Cheelee (CHEEL), which showed significant price action, highlighting how niche communities can drive outsized token movements independent of broader market sentiment.

Market Implications

This divergence—where NFT declines sharply while emerging categories maintain footing—suggests a market still in rebalancing mode, with capital rotation away from matured segments into innovation-focused narratives. The resilience of AI and SocialFi amid sector-wide weakness signals that market participants continue to price in long-term growth potential over near-term macro pressures.