AI Agent Market Map: The Hype Fades, Technology Continues

Author: Jay Jo, Source: Tiger Research, Translated by: Shaw Golden Finance

Summary

• After the sharp decline in token prices, the AI Agent market lost its momentum for growth, but technological development is still progressing steadily. Through the release of actual products and specialized on-chain functions, the decentralized finance artificial intelligence (DeFAI) field has regained attention.
• Specialized AI Agents optimized for specific functions have replaced the previous general-purpose AI Agents. Projects like Virtuals are actively building the infrastructure to connect these AI Agents and enable collaboration among them.
• AI Agents will become a core feature of crypto projects. Infrastructure that ensures smooth communication and collaboration between Agents will become crucial.

1. The craze has passed, but technology is still developing

The cryptocurrency industry has integrated artificial intelligence technology in various ways, with AI Agent being the most notable. The total market capitalization of related tokens once reached around $16 billion, indicating strong market interest. However, this attention was short-lived. Most projects failed to meet development expectations, and token prices plummeted over 90% from their peak.

A price drop does not mean a regression in technology. AI Agents remain an important technological field in the cryptocurrency space. Discussions about actual use cases have become more concrete, and teams are continuing to test new approaches. This report explores how AI Agents operate in the cryptocurrency field and examines potential future directions for their development.

2. The AI Agent Ecosystem Reshapes the Landscape After the Boom

2.1. Early AI Agent projects gradually fade out of the market.

The AI Agent sector in the cryptocurrency field has started gaining attention since the end of 2024. The ElizaOS team from ai16z and the G.A.M.E development stack from the Virtuals Protocol team have significantly lowered the barriers to AI Agent development. Launch platforms like DAOS.fun and Virtuals Fun provide easy tokenization pathways for projects developed. The process from development to launch has become simplified. Market interest has surged, and numerous projects have quickly emerged.

Most projects have proposed ambitious development blueprints, claiming to leverage artificial intelligence technology. Investors, filled with expectations for innovative services, have driven up token prices. However, in reality, these projects have merely fine-tuned or modified the foundational models of OpenAI or Anthropic through prompt engineering. Most projects have only built advanced chatbots for X or Telegram, rather than developing independent services. These projects emphasize innovative visions and technological differentiation, but their actual operations are no different from "Meme coins."

Some projects are exceptions. Projects like aixbt and Soleng have partially implemented their roadmaps and launched actual services. They adopt a token-gated mechanism to provide exclusive access to token holders. aixbt provides project analysis reports. Soleng analyzes Github repositories to support investor decision-making.

Even these relatively successful examples cannot overcome structural limitations. The reliance on an unstable income structure based solely on token price increases hinders development. The technical competitiveness lags behind Web2 companies. Token prices eventually fall. Operating funds are exhausted. Most projects have now suspended services.

2.2. DeFAI Project Revitalizing Industry Hope

The AI Agent technology once faced high expectations and subsequently entered an adjustment phase. Today, the decentralized finance artificial intelligence (DeFAI) sector has regained attention by proving its practical value. DeFAI Agents can execute automated investment strategies around the clock. They allow easy access to complex decentralized finance (DeFi) services through simple natural language instructions. This field was once a core theme in the early AI Agent domain. Most projects are still in the roadmap stage, with significant challenges in actual implementation, leading to a loss of attention in the sector. Recent product launches are reshaping market expectations.

Representative projects include Wayfinder and HeyAnon. Wayfinder executes on-chain tasks through a dedicated AI Agent called "Shells." Shells perform on-chain transactions directly via a built-in dedicated wallet. The system employs a specialized multi-agent architecture, including trading agents, perpetual agents, and contract agents. Each type of agent focuses on a specific role to automate various investment strategies. Users can easily execute simple cross-chain transactions or engage in advanced strategies such as basis trading and leveraged DCA.

2.3 From Individual Agent to Agent Network

Early AI Agent projects advocated for a "universal agent" capable of performing all functions, meaning an intelligent entity that can execute every task. This approach placed more emphasis on fundraising rather than the completeness of technology. Project teams proposed overly ambitious roadmaps to attract a broader market. However, most revealed limitations during the execution phase.

The current Agent ecosystem is evolving in a completely different direction. Developers are realizing the limitations of general-purpose Agents. They are now developing Agents that focus on specific domains. These Agents can collaborate with each other. It's like having skilled craftsmen with different specialties—carpenters, electricians, plumbers—working together to build a house.

The ACP (Agency Commerce Protocol) of Virtuals Protocol reflects this trend. It provides a standard framework for communication and task allocation among different Agents. Theoriq and General Impression have also built infrastructure to enhance interoperability between Agents. The market is reshaping towards maximizing value for the entire ecosystem rather than for individual Agents.

3. The Future Prospects of the AI Agent Market

After the early surge has faded, AI Agents continue to evolve. Speculative activities have ended, but projects are still leveraging AI Agents to build new features and services. Two changes are particularly notable.

First, AI Agents become a key infrastructure. AI Agents are no longer independent domains, but are integrated as fundamental functions of crypto projects. The blockchain data platform Nansen develops research Agents to make complex on-chain data easier to explore. Decentralized finance projects also add Agents to improve user access. AI Agents will become the final interface connecting users with the blockchain, rather than an optional feature.

Secondly, Agent commerce will grow and thrive. As AI Agents become the norm, interactions between Agents and between Agents and humans will increase. Secure transaction protocols and trust mechanisms will become increasingly important. Projects like ACP from Virtuals Protocol lay the groundwork for this.

These changes will simplify the complexity of cryptocurrencies, improve user experience, and create new economic opportunities.