Vitalik Buterin Supports AI Slowdown Amid 30% Token Drop
Ethereum co-founder Vitalik Buterin supports slowing down AI data center expansion, coinciding with a 30% drop in cryptocurrency AI tokens and rising local restrictions across the United States.
Ethereum co-founder Vitalik Buterin stated on Sunday that decelerating the AI data center expansion race is likely a positive development, coinciding with a deflation of the crypto market’s AI token bubble. In a publication on X, he voiced opposition to the intense resistance directed at the anti-data-center movement.
He pushed back against what he called the “strong emotional reaction” against the anti-data-center movement.
I know this is a predictable opinion from me but I don't agree with the strong emotional reaction against the anti-data-center movements that I've seen this week.
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As I see it, algorithmic progress means that whatever you would be able to do with more and bigger data centers in 2…
— vitalik.eth (@VitalikButerin) November 8, 2026
That movement experienced a major week. According to Ballotpedia data, on November 3, voters across 10 states weighed in on 41 local ballot measures regarding data centers. A “yes” vote on 28 of those measures would restrict construction via moratoriums or bans. Following the election results, Senator Bernie Sanders advocated for an immediate national moratorium on data centers, joining several other Democratic lawmakers seeking to rein in the rapid growth of AI infrastructure.
The artificial intelligence sector within cryptocurrency has mirrored this cooling trend. Over a 30-day period, seven of the largest AI tokens experienced an average decline of 29.7%, which is nearly triple Bitcoin’s 10.7% decrease.
This raises the question of whether the slowdown advocated by Buterin is already manifesting as a bursting bubble within AI-related cryptocurrencies.
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Vitalik Argues a Slower AI Race Costs Little and Buys Time
His argument is built upon three main points, delivered, in his own words, “without any controversial ‘doomer arguments’.”
The delay is short. Thanks to better algorithms, today’s data centers will do in four years, “probably sooner,” what bigger ones could do in two.
The time is useful. “We need all the time we can get to better harden the world,” he wrote, against cybersecurity problems and biological risks.
Science barely slows. Research is held back by many things besides AI. Slowing AI by one year “will slow those down by much less than one year,” he wrote.
He concluded that “a slowdown in compute hyper-scaling seems quite net good.” He added that even if this stance proved erroneous, the outcome would not surpass “10+ other political things” in severity.
This perspective aligns with positions Buterin has maintained since 2023, when he introduced “d/acc”—his terminology for prioritizing defensive technologies—in an essay titled *My techno-optimism*.
The Crypto Bubble in AI Tokens Is Already Deflating
AI tokens represent the segment of the cryptocurrency market most directly tied to the artificial intelligence boom. This category encompasses networks that market computing power, deploy AI agents, or compensate individuals for model training. CoinGecko evaluated the sector’s total valuation at $18.9 billion on Monday morning.
A performance comparison of seven major AI tokens on Binance over a 30-day window was conducted against Bitcoin and Ether.
Hardest hit: Worldcoin (WLD) fell 43.2%, the Artificial Superintelligence Alliance token (FET) 37.5%, and NEAR 33.9%.
Best of the group: Render (RENDER) fell 17.1%, still more than Ether’s 16.1%.
From their highs: Internet Computer (ICP) trades 74.8% below its peak of the past year, Virtuals Protocol (VIRTUAL) 67.4% and FET 63.9%.
This downward price action mirrors broader skepticism surrounding corporate AI expenditures in traditional stock markets. Last Thursday’s sell-off across semiconductor equities drove Bitcoin beneath its 200-day moving average. Consequently, AI tokens—which initially surged the most on the narrative—have seen the steepest declines as enthusiasm wanes.
The proliferation of local restrictions on data centers introduces additional headwinds for decentralized compute networks. Conversely, Buterin’s thesis suggests an alternative outcome: if algorithmic advancements enable continued AI enhancement using existing hardware, a decelerated infrastructure expansion will not necessarily extinguish the demand for AI.
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Ethereum Price Analysis: Can ETH Hold $2,060?
Ether managed to defend this threshold on Sunday, albeit by a narrow margin. Trading at $2,104 on Binance, ETH reflects a 30-day loss of 16.1% after briefly touching $2,060 late Sunday, marking its lowest valuation since August 19.
ETH currently trades below both of its daily exponential moving averages (EMAs), which assign greater weight to recent price action. These benchmarks sit at $2,311 for the 200-day EMA and $2,370 for the 50-day EMA.
Resistance: $2,246, Sunday’s high, then $2,311, the 200-day EMA. Above that, $2,450, Wednesday’s high.
Support: $2,060, Sunday’s low. Below that, $1,854, the August 11 low.
ETHUSDT 1D chart. Source: TradingView.
Outlook
Trigger
Level to watch
Rebound
A daily close above $2,311
$2,450, Wednesday’s high
Holding pattern
ETH stays between $2,060 and $2,311
A range below both EMAs
Sell-off
A daily close below $2,060
$1,854, the August 11 low
Market participants questioning whether the crypto bubble is deflating should closely monitor AI tokens, given that they capitalized most aggressively on the initial AI hype cycle and are currently leading the market correction.
