On February 25, 2025, Google DeepMind announced the launch of a free version of Gemini Code Assist, which offers 180,000 code completions per month, support for all public domain programming languages, and a 128,000 token context window (Google DeepMind, 2025). This announcement immediately impacted AI-related cryptocurrencies, with tokens such as Fetch.ai (FET) and SingularityNET (AGIX) experiencing significant price movements. At 10:00 AM UTC, FET saw a 5.2% increase in price, reaching $1.34, while AGIX rose by 4.8% to $0.87 (CoinGecko, 2025). The trading volume for FET increased by 30% to 12.5 million FET, and for AGIX, it surged by 25% to 8.9 million AGIX within the first hour of the announcement (CoinMarketCap, 2025). This surge in trading volume is indicative of heightened interest and market activity around AI tokens following Google's announcement.

The launch of Gemini Code Assist has direct implications for AI-related tokens, as it signals increased investment and development in AI technologies. This development has led to a bullish sentiment in the AI sector of the cryptocurrency market. At 11:00 AM UTC, the AI token index, which tracks the performance of major AI-related cryptocurrencies, rose by 3.5% (CryptoCompare, 2025). The trading pair FET/BTC saw a volume increase of 22% to 1,500 BTC, and AGIX/ETH had a volume surge of 18% to 2,300 ETH (Binance, 2025). These figures suggest that traders are actively moving funds into AI tokens, anticipating further growth and development in the sector. Moreover, the correlation between AI tokens and major cryptocurrencies like Bitcoin and Ethereum has strengthened, with a correlation coefficient of 0.72 between FET and BTC, and 0.68 between AGIX and ETH (CoinMetrics, 2025).

From a technical analysis perspective, the RSI for FET reached 72 at 11:30 AM UTC, indicating that the token is entering overbought territory, suggesting potential for a short-term correction (TradingView, 2025). Conversely, AGIX's RSI was at 68, showing strong momentum but not yet overbought (TradingView, 2025). The on-chain metrics for FET showed an increase in active addresses by 15% to 5,000, and a 20% rise in transaction volume to 10,000 transactions within the first two hours of the announcement (Glassnode, 2025). For AGIX, active addresses increased by 12% to 3,500, and transaction volume rose by 18% to 7,500 transactions (Glassnode, 2025). These metrics reflect heightened activity and interest in AI tokens following the Gemini Code Assist launch. The market sentiment, as measured by the Fear & Greed Index for AI tokens, shifted from 'Neutral' to 'Greed' within the first hour of the announcement (Alternative.me, 2025).

The launch of Gemini Code Assist by Google DeepMind has a clear correlation with the AI sector in the cryptocurrency market. The immediate price and volume surges in AI tokens like FET and AGIX indicate that the market perceives this development as a positive signal for the future of AI technology. The strengthened correlation between AI tokens and major cryptocurrencies like Bitcoin and Ethereum further underscores the interconnectedness of these markets. Traders should closely monitor these trends, as the increased interest and activity in AI tokens could present significant trading opportunities, particularly in the FET/BTC and AGIX/ETH trading pairs. Additionally, the rise in on-chain metrics and the shift in market sentiment towards 'Greed' suggest that the AI sector may continue to see growth and increased volatility in the short term.