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- The AI agent field in cryptocurrency is struggling to gain traction.
- Most AI tokens have nearly plummeted to nothing.
- An analyst forecasts a tenfold recovery could occur.
The excitement that previously fueled the advancement of AI agents appears to have diminished.
Since reaching a high of $10 billion earlier this year, the sector’s market capitalization has almost been cut in half.
Additionally, 90% of cryptocurrencies associated with AI agent initiatives have nearly hit rock bottom, with very little trading activity.
AI agent crypto initiatives aim to develop systems capable of autonomously analyzing the crypto market without human involvement. They assert that they utilize AI technology to examine market patterns, execute trades, and even invest in cryptocurrency projects independently.
Improved Decision-Making
Proponents argue that AI agents could take the place of humans in overseeing crypto projects, potentially leading to superior decisions and increased profits.
Nevertheless, meme coins have surfaced as the most favored use of AI agents.
In October, an AI agent named “Truth Terminal” gained traction on social platforms, associated with the viral meme coin “Goatseus Maximus” (shortened to GOAT). GOAT was not created by “Truth Terminal,” but was referenced by an anonymous developer in a social media update.
Like meme coins, the worth of AI meme coins has also drastically fallen this year. GOAT’s market valuation has decreased by 91% from its peak of $1.2 billion.
Despite this, market analysts do not overlook the sector’s potential, but contend that the initial buzz surrounding social and meme-driven AI projects played a role in the decline.
Tom Ngo, the Executive Director of Metis, remarked that with the advent of new technologies, cryptocurrencies frequently undergo considerable fluctuations, leading market analysts to anticipate that AI-driven investors may face significant losses.
Gracy Chen, the CEO of Bitget, expressed that these AI token startups do not possess viable real-world uses, resulting in their downturn.
Nonetheless, Chen forecasts that the sector will expand to at least $50 billion this year.
“The AI token industry has yet to embark on its growth trajectory,” Chen emphasized.
Osato Avan-Nomayo serves as our DeFi correspondent located in Nigeria, concentrating on reporting related to DeFi and technology. Should you have any insights, feel free to reach out to him at [email protected].
