AI Agent token creation drops to near zero – Are memecoins taking over?

• AI agent token creation rate dropped by 99.5%, signaling a cooling market for AI-driven projects
• Memecoins, buoyed by SEC clarity, are regaining traction, with Solana’s ecosystem set to benefit

AI agent tokens, once the darlings of the crypto world, have taken a nosedive – Daily token creation is down a staggering 99.5% since December. Meanwhile, memecoins are making a sneaky comeback, riding high on renewed hype and a game-changing SEC ruling that spares them from the securities label.

As AI enthusiasm wanes and traders shift gears, Solana’s [SOL] ecosystem seems ready to cash in. Is this a flash in the pan, or are we witnessing the rebirth of memecoin mania?

AI agents lose momentum as creation rate falls

Source: Dune

According to recent data from Dune Analytics, Virtual’s AI token launch rate has collapsed by 99.5% from its December peak, now averaging just 6-7 new tokens daily.

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

Source: cookie.fun

In fact, market data seemed to reflect this shift – While AI agent tokens like VIRTUAL, AI16Z, and AIXBT 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.

While AI’s long-term potential remains intact, short-term speculation might just be be fading.

Memecoin speculation cycles – What’s different this time?

The ebbs and flows of speculation have precipitated a market shift. For instance – Solana-based token launchpad Pump.fun dropped out of the top-10 highest revenue-generating protocols in the last 24 hours, signaling a cooldown in certain segments of the market. The Solana Post noted,

“Pump.fun gets kicked out of the top 10 as the number of bonded meme coins is plummeting to zero.”

And yet, memecoins may not stay in the shadows for long. Consider this – AI-driven speculation, which commanded a 70% mindshare last month, has now fallen to 32% – A sign of capital rotation.

Source: Santiment

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 sporadic.

As AI tokens lose steam, memecoins are carving out a space once again, but the key question is whether this signals a full-fledged revival or just another short-term speculative cycle.

The SEC’s ruling – A gamechanger for memecoins?

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 subject to registration 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, encouraging 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.