AI has become one of the most discussed topics in the market. Even though AI tokens haven’t had the best year so far, funding has never been higher.
Here’s what you need to be aware of.
Crypto AI Funding Reaches $600 Million!
According to CryptoRank data, AI-related crypto projects have now raised more money for five consecutive quarters. In the second quarter of 2025, the sector received approximately $60 million in funding. In the second quarter of 2026, this figure reached $600 million.
This represents a gigantic jump of 10x in one year, even before the end of the quarter! Investors still clearly see long-term potential in this sector.
AI tokens still falling
Now here’s where it gets interesting. Data from Artemis revealed that the AI sector was down 8.1% year to date, based on a fully diluted market capitalization. This puts it in the red, even though investments in AI-driven crypto projects have continued to increase.
This implies that private investors support the long-term potential of the sector, while public markets still sleep with their eyes open.
Here’s another take – Researchers recently warned that the crypto-AI narrative may be ahead of its real-world usefulness. In fact, a recent academic survey claimed that meaningful integration between AI and cryptography is still in its early stages.
An important distinction can also be made: some projects use AI to improve cryptosystems, while others use blockchain to create AI infrastructure. What is key is the conclusion that not all tokens under the AI label solve the same problem nor do they have the same economic strength.
A very selective AI token rally
Despite industry pressure, a few tokens have stood out recently. Siren (SIREN), for example, is up nearly 28% over the past week, while Allora (ALLO) has surged more than 130%. Unibase (UB) also gained around 25%.
Some strong stories have won favor with users. But not all.
Bigger names like Artificial Superintelligence Alliance (FET) and Virtuals Protocol (VIRTUAL) were down during the same period. Simply put, today’s market is quite selective.
Final summary
- Funding for crypto-AI has increased 10-fold to $600 million.
- AI tokens have been selective, with SIREN, ALLO and UB rallying.
