- January 2, 2025
- Posted by: admin
- Category: BitCoin, Blockchain, Cryptocurrency, Investments
The AI token cumulative market cap rose by 14.9% in the past 24 hours and hit $49B. To put that into perspective, meme coins, a much older sector, now have a $117B market cap with a +8.9% 24-hour change.
Among the top gainers are Virtuals Protocol ($VIRTUALS) and ai16z ($AI16Z), both of which are now among the top 10 AI coins.
Haseeb Qureshi at Dragonfly Capital expects AI agent coins to outperform meme coins in 2025. In a strikingly insightful remark, Qureshi says the crypto community is shifting from financial nihilism to over-optimism.
The question is – will the AI token trend last?
AI Agents Lead a New Era in Crypto
A year ago, the idea of an AI agent independently managing a crypto ecosystem seemed like something out of a sci-fi horror movie. Ex Machina kind of thing.
Today, projects like Virtuals Protocol, Artificial Superintelligence Alliance, and ai16z form a rapidly expanding AI agent coin sector with a $16B market cap (20.5% 24-hour increase!).
$VIRTUALS, in particular, saw no meaningful activity whatsoever since its launch in early 2023 until it surged over 9,190% in November.
AI agents are not to be confused with AI bots. AI Agents are more advanced and autonomous, capable of learning, adapting, and making complex decisions. Bots typically follow pre-defined rules and perform specific tasks.
Qureshi predicts this trend will accelerate in 2025, but eventually die off. The novelty will wear thin, and sentiment will reverse. However, this isn’t likely to happen anytime soon, and we’re sure to see new AI agent token projects continue to flood the market.
What’s Hiding Behind the AI Facade?
There’s no shortage of AI agent tokens on the market. But how good are the projects behind these tokens?
According to Querishi, most AI agents are simply old-school chatbots with a meme coin facade. On top of that, project teams work behind the scenes to ensure their agent doesn’t say anything damaging to their reputation.
The bottom line is that meme-flavored AI agents don’t really do anything valuable. The real disruption brought about by AI won’t be on social media but in software engineering and trading. That’s because AI agents have the potential to make both financial markets and software development far more efficient.
The Missing Piece for AI Agent Innovation
If AI is so powerful, what’s stopping developers from building genuinely useful AI agents? Why are there so few of them?
The main bottleneck is the lack of reliable infrastructure. For crypto AI agents to handle complex, frequent tasks at a large scale, they need scalable networks with low transaction costs.
Most AI agent tokens run on Ethereum or Solana. Both blockchains often face congestion, which leads to slow transaction processing and high costs.
One potential solution to this is Layer-2 (L2) solutions. Ethereum has its fair share of L2 networks, but not Solana.
Luckily, this might soon change thanks to Solaxy ($SOLX). This L2 network built on top of Solana aims to increase transaction throughput and lower gas fees by handling part of the workload off-chain.
Without congestion, outages, and failed transactions, Solana would become a more appealing chain for AI agent developers. Ultimately, this would drive Solana’s growth in 2025 and encourage innovation in the industry.
$SOLX is currently available on presale at $0.001588. Early adopters have invested over $7.7M so far, a large part of which will go toward the network’s upgrades.
The project will roll out its L2 after the token claim. The adoption of this Layer 2 will directly impact demand for $SOLX, so the token has solid potential for long-term growth.
Is There Life for AI Beyond Hype?
Many see AI as a silver bullet, able to solve any problem and perform any task, from shitposting on X to stopping climate change. Of course, that’s far from the reality, yet the pace of innovation in the AI sector is staggering, and has other technologies playing catch up.
That’s why Solaxy might be precisely what AI token developers need to introduce more practical applications. Even so, no project has a 100% chance of success. We remind you to DYOR and only invest as much as you can afford to lose.