Vitalik Buterin said on Sunday that slowing the AI data center race is probably a good thing, as the crypto bubble around AI tokens loses air. The Ethereum co-founder made the case in a post on X.
He pushed back on 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.
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 had a big week. On November 3, voters in 10 states decided 41 local ballot measures on data centers, Ballotpedia counted. A “yes” vote on 28 of them would limit building through bans or moratoriums. After the vote, Senator Bernie Sanders called for a “national data center moratorium now,” one of several Democrats pushing to rein in the AI buildout.
Crypto’s AI corner has felt the same chill. Seven of the largest AI tokens fell 29.7% on average over the past 30 days, almost three times Bitcoin’s 10.7% drop.
So is the slowdown Buterin wants already showing up as a popping bubble in AI tokens?
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Vitalik Argues a Slower AI Race Costs Little and Buys Time
His case rests on three points, and he made it, in his 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.” Even if it proved a mistake, it would not be worse than “10+ other political things,” he added.
The view fits what Buterin has argued since 2023, when he set out “d/acc,” his name for speeding up defensive technology first, in an essay titled My techno-optimism.
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The Crypto Bubble in AI Tokens Is Already Deflating
AI tokens are the part of crypto that trades most directly on the AI boom. They include networks that sell computing power, run AI agents or pay people to train models. CoinGecko valued the sector at $18.9 billion on Monday morning.
We compared the 30-day moves of seven of the largest AI tokens on Binance with 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%.
The selling lines up with doubts about AI spending in the stock market. Last Thursday’s sell-off in chip stocks pushed Bitcoin below its 200-day average, and AI tokens, which rose fastest on the AI story, have fallen fastest as it cools.
A wave of local data center bans adds a new worry for tokens that sell computing power. Buterin’s own argument cuts the other way, though: if better algorithms keep AI improving on today’s machines, a slower buildout does not end demand for AI.
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Ethereum Price Analysis: Can ETH Hold $2,060?
It held on Sunday, but with little room to spare. Ether trades at $2,104 on Binance, down 16.1% in 30 days, after touching $2,060 late Sunday, its lowest price since August 19.
ETH sits below both of its daily exponential moving averages (EMAs), averages that weight recent prices more. They stand at $2,311 for 200 days and $2,370 for 50 days.
- 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 |
For traders asking whether the crypto bubble is bursting, AI tokens are the place to watch. They rose fastest on the AI story, and they are now falling fastest.
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Daniel Frances is a technical writer and Web3 educator specializing in macroeconomics and DeFi mechanics. A crypto native since 2017, Daniel leverages his background in on-chain analytics to author evidence-based reports and deep-dive guides. He holds certifications from The Blockchain Council, and is dedicated to providing “information gain” that cuts through market hype to find real-world blockchain utility.