NFT News: Digital Assets Struggle While AI and SocialFi Tokens Show Mixed Signals

BloodInStreets · 2026-01-05T13:51:55+00:00

On December 26, the crypto market showed mixed results, with NFTs suffering a significant drop of 7.38%. While some niches like AI and SocialFi saw slight gains, the overall sentiment remained cautious, highlighting selective investor behavior in a fragmented market.

BloodInStreets

2026-01-05 13:51:55

Abstract generation in progress

The crypto market painted a mixed picture on December 26, with most sectors experiencing notable headwinds. The NFT sector bore the brunt of selling pressure, dropping 7.38% over the preceding 24 hours, highlighting broader weakness across digital collectibles and on-chain assets.

Diverging Fortunes Across Major Sectors

While NFT and traditional platforms faced downward momentum, certain niches defied the broader trend. The AI sector posted a modest 0.40% gain, though recent data shows volatility within the vertical—Bittensor (TAO) retreated 1.44% in its latest 24-hour period, while 0G (0G) slipped 0.76% despite an earlier surge. SocialFi tokens proved slightly more resilient, gaining 0.69% collectively, though Cheelee (CHEEL) registered a 0.38% decline in recent hours after previously capturing attention with outsized moves.

Broader Market Weakness

Beyond AI and SocialFi, the landscape grew grimmer. DeFi, PayFi, and Layer1 sectors all recorded declines, though selective tokens within each category managed to hold ground or inch higher. The market’s sectoral fragmentation suggests investors remain selective, rotating between perceived winners and abandoning underperformers across NFT news cycles and emerging narratives.

The divergence indicates a market still searching for fresh catalysts, with strength concentrated in speculative bets rather than broad-based recovery across the crypto ecosystem.

TAO1,65%

0G-3,49%

CHEEL-2,45%

DEFI10,53%

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