Synthetic intelligence brokers have to prioritize their intrinsic utility, not the launch of their in-house native tokens to lift funds.
AI agent-related tokens have considerably declined over the previous month, as their cumulative market capitalization decreased by over 21% to the present $27 billion, in accordance with CoinMarketCap knowledge.
Whereas their continued decline could also be a part of the broader crypto market correction, one more reason could possibly be a scarcity of concentrate on intrinsic utility, in accordance with Changpeng Zhao, the founder and former CEO of Binance, the world’s largest cryptocurrency alternate.
30-day market cap chart of AI agent tokens. Supply: CoinMarketCap
Zhao wrote in a March 17 X submit:
“Whereas crypto is the foreign money for AI, not each agent wants its personal token. Brokers can take charges in an present crypto for offering a service.”
“Launch a coin solely you probably have scale. Deal with utility, not tokens,” he added.
Supply: Changpeng Zhao
Zhao’s feedback come throughout a big downtrend for AI cryptocurrencies, which misplaced over 61% of their peak $70.4 billion market capitalization within the three months since they began to say no on Dec. 7.
AI agent tokens, market cap, 1-year chart. Supply: Coinmarketcap
Quite a few enterprise capital companies, together with Pantera Capital and Dragonfly, are enthusiastic about the way forward for AI brokers however have but to put money into them, in accordance with a panel dialogue at Consensus 2025 in Hong Kong.
Associated: 0G Basis launches $88M fund for AI-powered DeFi brokers
AI brokers are performing autonomous blockchain transactions, alternate providers
AI brokers are gaining growing curiosity due to their promise of accelerating on-line productiveness, streamlining decision-making processes and creating new monetary alternatives.
AI brokers are already executing autonomous transactions on the blockchain with out direct human enter.
The idea gained consideration following a Dec. 16 submit by Luna, an AI agent on Virtuals Protocol, which sought image-generation providers.
LUNA digital protocol, X submit. Supply: Luna
Luna additionally obtained an X response from STIX Protocol, one other autonomous AI agent, which generated the requested pictures.
LUNA funds to STIX protocol. Supply: Basescan
After the photographs have been generated, Luna paid STIX Protocol’s AI agent $1.77 value of VIRTUAL tokens on Dec. 16, onchain knowledge exhibits.
But, a few of the demand for AI brokers has since pale, as Virtuals Protocol’s income fell 97%, Cointelegraph reported on Feb. 28.
Associated: Libra, Melania creator’s ‘Wolf of Wall Road’ memecoin crashes 99%
Trade watchers foresee a 12 months of great upside for the rising subject of AI cryptocurrencies.
AI brokers launch platform ai16z and decentralized buying and selling protocol Hyperliquid are “poised for progress in 2025,” Alvin Kan, chief working officer of Bitget Pockets, instructed Cointelegraph. “Rising narratives like AI-driven investments, decentralized AI brokers and tokenized property trace at a tech-driven shift, although with added threat,” he stated.
Journal: ETH could backside at $1.6K, SEC delays a number of crypto ETFs, and extra: Hodler’s Digest, March 9 – 15
