There's a noticeable shift happening in how investors and builders are viewing the AI hype cycle. The initial euphoria around AI integration and deployment is cooling down, and pushback is becoming impossible to ignore.

What's driving this? Several factors are converging. First, the gap between AI marketing promises and actual utility is becoming harder to gloss over. Projects that slapped "AI-powered" on their pitch decks without substantial tech behind it are facing increasing scrutiny. Retail traders and institutions alike are demanding proof of concept rather than just concepts.

Second, the infrastructure costs and energy consumption concerns around AI are getting real attention from the Web3 community, especially those focused on sustainability. This is creating friction between the "AI everything" crowd and those advocating for practical, measured implementation.

Third, there's fatigue from constant pivoting. Some protocols that rode the AI wave are now quietly shifting narratives or getting called out for vaporware. The market doesn't have infinite patience for this cycle.

This doesn't mean AI in crypto is dead—far from it. What's changing is the bar. Projects now need actual differentiation, not just buzzwords. Real utility in data processing, automation, or smart contract optimization will separate the signal from the noise.

For traders and hodlers, this means more skepticism toward AI-focused tokens lacking fundamentals. For builders, it's a wake-up call: ship real tech or risk losing credibility.