AI Agents: The New Catalyst for the Crypto AI Market

[TL;DR]:

Looking back at 2024, the AI boom in the crypto financial sector sparked unprecedented attention.
At the beginning of the year, the AI sector consisted of only a handful of projects. By the end of the year, it had undergone a dramatic transformation, establishing itself as an independent and unignorable track.
In particular, during the second half of 2024, the rise of the AI Agent narrative pushed the crypto AI story to new heights.

Introduction

In the second half of 2024, the popularity of AI Agents continued to climb. It all started with a chatbot called “Terminal of Truths,” which gained widespread attention on the X platform for its humorous and witty responses. This even earned it $50,000 in funding from a16z founder Marc Andreessen. Inspired by its content, someone created the GOAT token, which surged over 10,000% within just 24 hours. The skyrocketing price of the token brought AI Agents into the spotlight, attracting significant attention from investors in the crypto financial market.

What Is an AI Agent?

In simple terms, an AI Agent can be understood as an “intelligent digital assistant.” For example, Apple’s Siri is a type of AI Agent.

However, unlike ordinary digital assistants, AI Agents are intelligent s based on large language models (LLMs). They can perceive their environment, reason and make decisions, and ute complex tasks by utilizing tools or performing actions.

The workflow of an AI Agent follows a logical sequence: Perception Module (input acquisition) → Large Model (understanding, reasoning, and planning) → Tool Invocation (task ution) → Feedback and Optimization (validation and adjustment). First, the AI Agent gathers data from the external environment through the Perception Module. Then, the large model performs logical reasoning to generate potential solutions or formulate action plans. Here, the large model acts as the “brain” of the AI Agent, playing a critical role in decision-making. Based on the decisions made by the large model, the AI Agent invokes external tools, plugins, or APIs to complete specific tasks. Finally, it validates and adjusts the results based on feedback, forming a closed-loop optimization process.

Therefore, how does an AI Agent differ from ordinary digital assistants in specific Web3 application scenarios? Simply put, AI Agents are smarter. Take quantitative trading bots as an example. Ordinary trading bots ute arbitrage programs strictly according to preset instructions, even if external conditions change. For instance, if a user sets a strategy to ute trades only when profits exceed 1%, the bot will follow this rule even in the event of market volatility. However, AI Agents are different. While they can also ute trades according to preset instructions in routine scenarios, they can automatically adjust strategies based on market fluctuations when conditions change.

Thus, the core advantage of AI Agents lies in their ability to self-learn and make autonomous decisions. By understanding their environment, AI Agents can continuously optimize their decision-making processes and improve task ution efficiency. They can also flexibly respond to changes in the external environment.

From an industry development perspective, the market generally has two expectations for AI Agents. One is for AI Agents to act as independent entities with their own identities and brands, capable of autonomously providing user services. The other is for users to have personal AI Agents, akin to personal assistants, to help manage tasks. In practice, most current explorations in the market are focused on the first direction.

Debut at the Peak: GOAT Token Ignites the AI Agent Sector

As mentioned earlier, the emergence of the GOAT token, derived from the chatbot “Terminal of Truths,” marked the beginning of this AI Agent cycle. In October 2024, the GOAT token surged by 10,000% within 24 hours of its launch, sparking a frenzy of AI Agent Meme token speculation and leading to the mass issuance of nearly a hundred AI Agent Meme tokens.

With the rising momentum of the AI Agent sector, it has gradually evolved into an independent niche within the crypto AI field. In just a few months, the discussion popularity on social media and the profit-making opportunities on the chain within the AI Agent sector have already far surpassed the previous wave of animal-themed Meme tokens. As of the time of publication by Gate.io, Coingecko data shows that the total market cap of AI Agent-related tokens has reached $16.9 billion, accounting for over 30% of the total market cap ($48 billion) of all projects in the crypto AI sector. The hype surrounding it continues to grow.

Looking back at market trends, the rise of AI Agents can be divided into two phases:

Phase 1: The Meme Phase Led by GOAT
GOAT itself was a Meme token generated from a conversation between two AI agents. This was the first time AI demonstrated human-like behavior to achieve its goals, making it highly experimental and, at the time, considered ahead of its time. The seemingly nonsensical narrative of Meme tokens provided fertile ground for its development. As GOAT gained traction, similar tokens began to emerge. However, most of these tokens were limited to functionalities like automatic tweeting and replying, lacking practical applications. During this phase, AI Agent tokens were generally referred to as AI + Meme tokens.

Despite the seemingly superficial nature of the AI Agent Meme trend, it not only triggered a new wave of speculation in the crypto AI sector but also shifted the market’s focus. Attention began to move away from traditional decentralized data, GPUs, and other crypto AI infrastructure toward AI Agent applications, setting the stage for the second phase of development.

Phase 2: The Application Exploration Phase
As projects proliferated during the first phase, the market gradually realized that AI Agents could extend beyond simple social media interactions to create tangible value in areas like content production and investment analysis. Consequently, AI Agents began to detach from their Meme roots, forming an entirely new sector that continues to gain traction.

What’s Next for the AI Sector in 2025?

As 2025 begins, several institutions have shared their outlooks on industry trends for the year. Organizations like a16z, VanEck, Bitwise, Hashed, Blockworks, Messari, and Framework have all expressed optimism about the development of the crypto and AI markets, particularly highlighting the potential for explosive growth in AI Agent-related products in 2025.

However, some analysts have pointed out that while the AI Agent trend may persist for some time, it is likely to fade eventually. Dragonfly’s managing partner has stated that the AI Agent craze is expected to last throughout 2025 but will gradually wane. According to Dragonfly, AI Agents are not true intelligent entities but rather chatbots with Meme tokens attached. Beyond posting on Twitter, their autonomous capabilities are quite limited. This does not represent a long-term disruption brought by AI but rather a phenomenon driven by their social appeal, which has captured the crypto community’s attention.

From the broader AI industry perspective, however, there are indeed a series of events supporting the growth of AI Agents. For example, OpenAI is undergoing a transition from GPT to a general AI Agent. Reportedly, OpenAI plans to launch a new AI Agent product called “Operator” in January 2025. This product can automatically perform complex tasks such as coding, travel booking, and e-commerce shopping. Some analysts believe that the release of Operator could be as groundbreaking as Sora, potentially reigniting the AI market. Additionally, NVIDIA’s annual AI Summit in March 2025 is another focal point for the crypto and AI industries, with the potential to attract capital inflows and further ignite the crypto AI sector.

On the policy front, there is also good news. In January, newly elected U.S. President Donald Trump will officially take office. He has announced the appointment of former PayPal utive David O. Sacks as the White House’s AI and cryptocurrency affairs director, tasked with guiding government policies in these areas. David Sacks brings dual investment experience in the crypto and AI industries, having invested in companies like Multicoin and several AI firms. The market expects his policies to promote the integration of crypto and AI.

In summary, the rise of AI Agents in 2024 injected new vitality into the crypto AI sector. From the explosive popularity of Meme tokens to the establishment of AI Agents as an independent sub-sector, their technical advantages and application potential have gradually become apparent. This not only shifted the narrative within the crypto AI market but also created new investment opportunities.