These AI Altcoins Are Leading The Crypto Market Recovery 

Crypto market capitalization is back over $4 trillion again as markets rebound from a record leverage flush over the weekend. 

Around $300 billion has returned to spot crypto markets on Monday morning after overleveraged whales caused a massive meltdown over the weekend.

Bitcoin and Ether have both recovered back to the middle of their range-bound channels, but some of the AI-related altcoins are surging.

AI-focused crypto token Bittensor (TAO) has pumped a whopping 35%, topping $410 in an eleven-week high on Monday morning. However, the native token for the decentralized machine learning network remains down 46% from its all-time high.

Another AI token, ChainOpera AI (COAI), has skyrocketed a whopping 70% to an all-time high of $43.80 on Sunday. Decentralized GPU compute platform Render (RNDR) has gained 17% on the day to reach $2.80 during Monday morning trading in Asia.

Altcoins Leading the Recovery

DeFi platform Mantle (MNT) has also surged today, with a 27% move to reclaim $2.20, recovering all losses from the weekend rout. The Trump family DeFi platform (WLFI) is on the rise as well, with an 18% gain on the day to reach $14.30 at the time of writing. Binance’s tokens, BNB and ASTER, were both performing well, gaining 14% apiece.

The Binance exchange was implicated during the big crash as its market maker froze and a number of tokens depegged, leading to mass liquidations.

The firm issued a statement on Sunday that this happened before the selloff but offered compensation to traders who held USDE, BNSOL, and WBETH as collateral.

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ETH had made more than 8%, reclaiming $4,200, XRP jumped by 9% to $2.57, and Solana was up 8% at $195. Meanwhile, Dogecoin, Chainlink, and Sui were all in double-figure gains as altcoins led the market recovery today.

In the future, we’ll look back at this wick and see it as a bump before new highs.

Next week green for #Altcoins.

In 2-4 weeks new test of the ATH. pic.twitter.com/BNwkuuVH7Y

— Michaël van de Poppe (@CryptoMichNL) October 12, 2025

A Healthy Flushout

While the leverage flush was brutal, the largest ever, it is healthy for markets, said Justin d’Anethan, Head of Partnerships at Arctic Digital, who estimated that it was 10 to 15 times larger than the COVID crash or FTX, in terms of leverage wiped out.

The last time altcoins dumped so hard was the March 2020 COVID meltdown, and a massive altseason followed in 2021.

“The fact that Bitcoin held above $115K after that kind of stress is a testament to the asset’s structural strength,” he added.

BTC recovered 5% from its sub-$110,000 dip and was trading at $115,300 at the time of writing.