NFT Sector Takes a Hit Amid Mixed Crypto Market Performance

The crypto market is showing clear signs of sector rotation as of December 26. While most digital asset categories are retreating, the NFT space experienced more significant pressure, dropping 7.38% over the past 24 hours—a notable underperformance compared to the broader market sentiment.

However, not all areas are in the red. The AI sector has managed to stay relatively afloat, posting a modest 0.40% gain. Meanwhile, SocialFi tokens have demonstrated stronger momentum with a 0.69% increase, suggesting investor interest is shifting toward specific high-conviction segments.

Individual tokens tell a more nuanced story. Within the AI space, Bittensor (TAO) edged into positive territory with a -0.37% movement, while 0G (0G) showed more dramatic volatility at -0.60%. On the SocialFi side, Cheelee (CHEEL) managed a +0.05% performance, demonstrating resilience despite sector headwinds.

Beyond these pockets of strength, traditional crypto categories like DeFi, PayFi, and Layer1 protocols are all facing downward pressure. The mixed performance across different sectors underscores the current market dynamic: while mainstream categories struggle, specialized segments continue to attract selective capital flows. This divergence suggests traders are carefully picking winners rather than moving in or out of crypto as a whole.