The AI crypto sector has seen an influx of capital, with over $3 billion raised by 122 projects last year. This average funding per project is a staggering $28 million.
Compared to other blockchain sectors, AI dominates, accounting for more than half of its parent category. It has attracted nearly 2x more funding than Chain and Infrastructure projects, 3.7x more than Social applications, and 5.6x more than GameFi.
The number of AI projects entering the market has skyrocketed, with a total of 338 currently tracked. However, the lifespan of an average AI project is alarmingly short, with over 70% failing within six months. This rapid decline in user engagement suggests that many projects lack long-term utility and rely solely on initial hype.