AI Agent Market Map: Hype Ends, Technology Continues
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AI Agent Market Map: Hype Ends, Technology Continues
Speculation has ended, but the project continues building new features and services using AI agents.
Navigating Web3 tides with focused insightsAuthor: Tiger Research
Translation: AididiaoJP, Foresight News
Summary
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After a sharp drop in token prices, interest in the AI agent market has cooled, but technical development continues steadily. The DeFAI sector is regaining attention through actual product launches and specialized on-chain capabilities.
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Specialized agents optimized for specific functions are replacing earlier general-purpose agents. Projects like Virtuals are actively building infrastructure to connect these agents and enable collaboration.
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AI agents will be integrated as core functionalities within crypto projects. Infrastructure enabling seamless communication and cooperation between agents will become crucial.
Hype Ends, Technology Moves On
The cryptocurrency industry has integrated AI technology in various ways, with AI agents receiving the most attention. At one point, the total market cap of tokens related to agents reached approximately $16 billion, reflecting strong market interest—though short-lived. Most projects failed to meet development expectations, and token prices plummeted more than 90% from their peaks.
This price decline does not indicate technological regression. AI agents remain a significant technological domain within crypto. Discussions around practical use cases have become more concrete, and teams continue testing new approaches. This report explores how AI agents function within the crypto space and examines potential future developments.
Redefining the AI Agent Ecosystem After the Hype
Early AI Agent Projects Fade From Market
The AI agent segment in crypto began gaining attention at the end of 2024. Development stacks such as ElizaOS by the ai16z team and G.A.M.E by the Virtuals Protocol team significantly lowered the barrier to building agents. Launch platforms like DAOS.fun and Virtuals Fun provided avenues for tokenizing developed agents. The process from development to deployment became streamlined, sparking explosive market interest and a rapid surge of agent projects.
Most projects proposed ambitious roadmaps leveraging AI technology. Investors drove up token prices based on expectations of innovative services. In reality, these projects were little more than wrappers around fine-tuned or prompt-engineered OpenAI or Anthropic base models. Most built advanced chatbots for X or Telegram rather than developing standalone services. While emphasizing innovation and technical differentiation, their operations were nearly indistinguishable from meme coins.
Source: aixbt
However, some projects stood out. Projects like aixbt and Soleng partially delivered on their roadmaps and launched actual services. They used token gating to provide exclusive access to token holders. Aixbt offers project analysis reports, while Soleng analyzes GitHub repositories to support investor decision-making.
Even these relatively successful cases couldn't overcome structural limitations. An unstable revenue model relying solely on rising token prices hindered progress. Technical competitiveness lagged behind Web2 companies. Token prices eventually fell, operational funds dried up, and most of these projects have now suspended services.
DeFAI Projects Reignite Hope in the Sector
AI agent technology, once burdened by over-optimism, has entered a correction phase. The DeFAI space is regaining attention by demonstrating tangible value. DeFAI agents execute automated investment strategies 24/7, enabling users to easily access complex DeFi services via simple natural language commands. This was a core narrative in the early AI agent landscape. Most projects remained at the roadmap stage, struggling with implementation, causing the sector to temporarily lose relevance. Recent product releases are now rebuilding market expectations.
Representative projects include Wayfinder and HeyAnon. Wayfinder uses dedicated AI agents called "Shells" to perform on-chain tasks. Shells execute on-chain transactions directly through built-in dedicated wallets. The system employs a specialized multi-agent architecture comprising trading agents, perpetual agents, and contract agents. Each agent type focuses on a specific role, enabling automation across various investment strategies. Users can easily execute simple cross-chain trades or advanced strategies such as basis trading and leveraged dollar-cost averaging.
From Individual Agents to Agent Networks
Early AI agent projects promoted "general-purpose agents" capable of performing all functions. This approach prioritized fundraising over technical maturity. Projects proposed expansive roadmaps to capture broader markets, exposing their limitations during implementation.
The current agent ecosystem is evolving in a completely different direction. Builders now recognize the limitations of general-purpose agents and are instead developing specialized agents focused on specific domains. These agents can collaborate—similar to skilled craftsmen like carpenters, electricians, and plumbers working together to build a house.
Virtuals Protocol's ACP exemplifies this trend. It provides a standardized framework for communication and task delegation among different agents. Theoriq and General Impression are also building infrastructure to enhance interoperability between agents. The market is shifting toward maximizing the value of the entire agent ecosystem rather than individual agents.
Future Scenarios for the AI Agent Market
After the initial hype subsides, AI agents continue to evolve. Speculation has ended, but projects persist in using AI agents to build new features and services. Two shifts stand out.
First, AI agents are becoming essential infrastructure. Rather than existing as a standalone sector, AI agents are being integrated as fundamental features within crypto projects. Blockchain data platform Nansen has developed research agents to make complex on-chain data easier to explore. DeFi projects are also adding agents to improve user accessibility. AI agents will become the final interface connecting users to blockchains—not an optional add-on.
Second, agent-to-agent commerce will grow. As AI agents become standard, interactions between agents and between agents and humans will increase. Secure transaction protocols and trust mechanisms will become increasingly important. Projects like Virtuals Protocol's ACP are laying the groundwork for this evolution.
These changes will simplify complexity in the crypto space, enhance user experience, and create new economic opportunities.
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