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AI and SocialFi Outperform Amid Broader Market Pullback; NFT Sector Weakens
Market Overview: Most Crypto Assets Under Pressure
The crypto market experienced a broad retreat on December 26, with the majority of sectors turning red. The NFT sector bore the brunt of the selling, sliding 7.38% over the past 24 hours. Meanwhile, most traditional sectors including DeFi, PayFi, and Layer1 also faced headwinds, reflecting a cautious market sentiment across the board.
Divergence Emerges: AI and SocialFi Show Different Trajectory
Contrasting the broader weakness, two sectors managed to buck the trend. The AI sector edged into positive territory with a modest 0.40% gain, while SocialFi demonstrated similar resilience with a 0.69% advance. This divergence suggests selective interest among traders in these emerging areas.
Individual Tokens Tell a Mixed Story
Within the AI category, performance varied significantly. Bittensor (TAO) retreated 1.05% in 24-hour trading, while 0G (0G) also declined 1.08%, suggesting cooling momentum even within the sector.
In the SocialFi space, Cheelee (CHEEL) showed modest upside with a 0.19% gain, indicating relatively stable investor appetite in social finance-focused projects.
What This Means for Traders
The current market dynamic paints a picture of consolidation, with most sectors consolidating recent gains while specific niches maintain support. The NFT sector’s notable weakness stands out against the relatively steadier performance in emerging categories like AI and SocialFi.