AI Crypto Market Sees Sharp Decline as Institutions Flock to Traditional Assets

The AI crypto market is experiencing a downturn after months of hype and speculation. In July 2026, AI tokens posted a modest return of only 3.3%, significantly lower than the 10.7% recorded by RWAs.

This disparity reveals that many AI crypto projects lack substance, with their value largely based on storytelling rather than solid fundamentals.

Institutional players are shifting their focus towards more established assets like Bitcoin and stablecoins, which offer liquidity and mass adoption. BlackRock, Franklin Templeton, and Ondo are leading the charge in tokenizing real assets and generating income through this process.