The AI agent market has seen declining hype following a sharp drop in token prices, but technological development continues to advance steadily. The DeFAI (Decentralized Finance AI) sector is regaining attention through the launch of practical products and specialized on-chain functionalities, with representative projects like Wayfinder and HeyAnon using dedicated AI agents to execute automated investment strategies and on-chain tasks.

Market Restructuring: Early generic agent projects are gradually exiting the market due to unmet technical expectations. The current trend is shifting toward developing specialized agents focused on specific functions, enabled by infrastructure that facilitates collaboration among agents.

Technological Shifts: Projects like Virtuals Protocol’s ACP provide standardized frameworks to promote communication and task allocation among different agents, enhancing interoperability across the ecosystem.

Future Outlook: AI agents are increasingly becoming a foundational feature of crypto projects rather than a standalone domain—for example, integrated into data platforms and DeFi services to improve user experience. Business interactions and security protocols between agents will also become key development priorities.

Overall, AI agents are evolving into core interfaces connecting users with blockchain technology, poised to significantly simplify crypto operations and create new economic opportunities.

Abstract

The AI agent market experienced a rapid decline in hype after token prices plummeted, but technological development continues to progress. The DeFAI sector is regaining traction through the release of practical products and specialized on-chain capabilities.

Specialized agents optimized for specific functions have replaced earlier generic agents. Projects like Virtuals are actively building infrastructure to connect and enable collaboration among these agents.

AI agents will be integrated as core functionalities into crypto projects. Infrastructure enabling seamless communication and coordination between agents will become critically important.

Hype Fades, Technology Advances

The cryptocurrency industry has integrated AI technology in various ways, with AI agents attracting the most attention. The total market capitalization of agent-related tokens once reached approximately $16 billion, reflecting intense market interest. However, this focus was short-lived. Most projects failed to meet development expectations, and token prices plummeted by over 90% from their peaks.

The price decline does not signify technological regression. AI agents remain a vital technological frontier in the crypto space. Discussions around practical use cases have become more concrete, and teams continue to experiment with new approaches. This report explores how AI agents are evolving within the crypto ecosystem and examines potential future developments.

Reshaping the AI Agent Ecosystem After the Hype

Early AI Agent Projects Fade from the Market

The AI agent sector in crypto began gaining attention in late 2024. The ElizaOS by ai16z and the G.A.M.E development stack by Virtuals Protocol significantly lowered the barrier to agent development. Launch platforms like DAOS.fun and Virtuals Fun provided avenues for tokenizing developed agents. The process from development to release became streamlined, triggering an explosion of market interest and a rapid emergence of agent projects.

Most projects proposed ambitious roadmaps leveraging AI technology. Investors drove token prices higher based on expectations of innovative services. In reality, many projects were merely fine-tuned or prompt-engineered wrappers around foundational models from OpenAI or Anthropic. Most built advanced chatbots for X or Telegram rather than developing independent services. While projects emphasized innovative visions and technical differentiation, their actual operations were hardly distinguishable from meme coins.

There were exceptions. Projects like aixbt and Soleng partially delivered on their roadmaps and launched actual services. They employed token-gating to provide exclusive access to token holders. Aixbt offered project analysis reports, while Soleng analyzed GitHub repositories to support investor decision-making.

Even these relatively successful cases could not overcome structural limitations. Unstable revenue models overly reliant on token price appreciation hindered progress. Technical competitiveness lagged behind Web2 companies. Token prices eventually declined, operational funding dried up, and most projects have now suspended services.

DeFAI Projects Reignite Hope in the Sector

AI agent technology, once burdened by excessive expectations, has entered a correction phase. The DeFAI sector is regaining attention by demonstrating practical value. DeFAI agents execute automated investment strategies 24/7. They enable users to access complex DeFi services easily through simple natural language commands. This domain was central to the early AI agent narrative. While most projects remained at the roadmap stage struggling with implementation, the sector temporarily lost focus. Recent product launches are rebuilding market expectations.

Representative projects include Wayfinder and HeyAnon. Wayfinder executes on-chain tasks through dedicated AI agents called "Shells." Shells directly perform on-chain transactions via built-in dedicated wallets. The system employs a sophisticated multi-agent architecture including trading agents, perpetual agents, and contract agents. Each agent type focuses on specific roles to automate various investment strategies. Users can effortlessly execute simple cross-chain transactions or advanced strategies like 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 robustness. Projects proposed overly expansive roadmaps to capture broader markets, but most exposed limitations during implementation.

The current agent ecosystem is moving in a entirely different direction. Builders recognize the constraints of general-purpose agents and are now developing domain-specific agents. These agents can collaborate with each other, akin to skilled artisans—carpenters, electricians, plumbers—working together to build a house.

Virtuals Protocol’s ACP exemplifies this trend. It provides a standardized framework for communication and task allocation among different agents. Theoriq and General Impression are also building infrastructure to enhance interoperability between agents. The market is restructuring to maximize the value of the entire agent ecosystem rather than individual agents.

Future Scenarios for the AI Agent Market

After the initial hype cooled, AI agents continue to evolve. Speculation has ended, but projects persist in leveraging AI agents to build new functionalities and services. Two changes stand out.

First, AI agents are becoming essential infrastructure. AI agents are no longer a standalone domain but are integrated as basic functionalities within crypto projects. Blockchain data platform Nansen is developing research agents to make complex on-chain data more accessible. DeFi projects are adding agents to improve user access. AI agents will become the final-step interface connecting users to blockchain, not an optional feature.

Second, agent commerce will expand. As AI agents become standard, interactions between agents and between agents and humans will increase. Secure transaction protocols and trust mechanisms will grow in importance. Projects like Virtuals Protocol’s ACP are laying the groundwork for this.

These changes will simplify complexities in the crypto space, enhance user experience, and create new economic opportunities.

The AI agent market has seen declining hype following a sharp drop in token prices, but technological development continues to advance steadily. The DeFAI (Decentralized Finance AI) sector is regaining attention through the launch of practical products and specialized on-chain functionalities, with representative projects like Wayfinder and HeyAnon using dedicated AI agents to execute automated investment strategies and on-chain tasks.

Market Restructuring: Early generic agent projects are gradually exiting the market due to unmet technical expectations. The current trend is shifting toward developing specialized agents focused on specific functions, enabled by infrastructure that facilitates collaboration among agents.

Technological Shifts: Projects like Virtuals Protocol’s ACP provide standardized frameworks to promote communication and task allocation among different agents, enhancing interoperability across the ecosystem.

Future Outlook: AI agents are increasingly becoming a foundational feature of crypto projects rather than a standalone domain—for example, integrated into data platforms and DeFi services to improve user experience. Business interactions and security protocols between agents will also become key development priorities.

Overall, AI agents are evolving into core interfaces connecting users with blockchain technology, poised to significantly simplify crypto operations and create new economic opportunities.

Abstract

The AI agent market experienced a rapid decline in hype after token prices plummeted, but technological development continues to progress. The DeFAI sector is regaining traction through the release of practical products and specialized on-chain capabilities.

Specialized agents optimized for specific functions have replaced earlier generic agents. Projects like Virtuals are actively building infrastructure to connect and enable collaboration among these agents.

AI agents will be integrated as core functionalities into crypto projects. Infrastructure enabling seamless communication and coordination between agents will become critically important.

Hype Fades, Technology Advances

The cryptocurrency industry has integrated AI technology in various ways, with AI agents attracting the most attention. The total market capitalization of agent-related tokens once reached approximately $16 billion, reflecting intense market interest. However, this focus was short-lived. Most projects failed to meet development expectations, and token prices plummeted by over 90% from their peaks.

The price decline does not signify technological regression. AI agents remain a vital technological frontier in the crypto space. Discussions around practical use cases have become more concrete, and teams continue to experiment with new approaches. This report explores how AI agents are evolving within the crypto ecosystem and examines potential future developments.

Reshaping the AI Agent Ecosystem After the Hype

Early AI Agent Projects Fade from the Market

The AI agent sector in crypto began gaining attention in late 2024. The ElizaOS by ai16z and the G.A.M.E development stack by Virtuals Protocol significantly lowered the barrier to agent development. Launch platforms like DAOS.fun and Virtuals Fun provided avenues for tokenizing developed agents. The process from development to release became streamlined, triggering an explosion of market interest and a rapid emergence of agent projects.

Most projects proposed ambitious roadmaps leveraging AI technology. Investors drove token prices higher based on expectations of innovative services. In reality, many projects were merely fine-tuned or prompt-engineered wrappers around foundational models from OpenAI or Anthropic. Most built advanced chatbots for X or Telegram rather than developing independent services. While projects emphasized innovative visions and technical differentiation, their actual operations were hardly distinguishable from meme coins.

There were exceptions. Projects like aixbt and Soleng partially delivered on their roadmaps and launched actual services. They employed token-gating to provide exclusive access to token holders. Aixbt offered project analysis reports, while Soleng analyzed GitHub repositories to support investor decision-making.

Even these relatively successful cases could not overcome structural limitations. Unstable revenue models overly reliant on token price appreciation hindered progress. Technical competitiveness lagged behind Web2 companies. Token prices eventually declined, operational funding dried up, and most projects have now suspended services.

DeFAI Projects Reignite Hope in the Sector

AI agent technology, once burdened by excessive expectations, has entered a correction phase. The DeFAI sector is regaining attention by demonstrating practical value. DeFAI agents execute automated investment strategies 24/7. They enable users to access complex DeFi services easily through simple natural language commands. This domain was central to the early AI agent narrative. While most projects remained at the roadmap stage struggling with implementation, the sector temporarily lost focus. Recent product launches are rebuilding market expectations.

Representative projects include Wayfinder and HeyAnon. Wayfinder executes on-chain tasks through dedicated AI agents called "Shells." Shells directly perform on-chain transactions via built-in dedicated wallets. The system employs a sophisticated multi-agent architecture including trading agents, perpetual agents, and contract agents. Each agent type focuses on specific roles to automate various investment strategies. Users can effortlessly execute simple cross-chain transactions or advanced strategies like 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 robustness. Projects proposed overly expansive roadmaps to capture broader markets, but most exposed limitations during implementation.

The current agent ecosystem is moving in a entirely different direction. Builders recognize the constraints of general-purpose agents and are now developing domain-specific agents. These agents can collaborate with each other, akin to skilled artisans—carpenters, electricians, plumbers—working together to build a house.

Virtuals Protocol’s ACP exemplifies this trend. It provides a standardized framework for communication and task allocation among different agents. Theoriq and General Impression are also building infrastructure to enhance interoperability between agents. The market is restructuring to maximize the value of the entire agent ecosystem rather than individual agents.

Future Scenarios for the AI Agent Market

After the initial hype cooled, AI agents continue to evolve. Speculation has ended, but projects persist in leveraging AI agents to build new functionalities and services. Two changes stand out.

First, AI agents are becoming essential infrastructure. AI agents are no longer a standalone domain but are integrated as basic functionalities within crypto projects. Blockchain data platform Nansen is developing research agents to make complex on-chain data more accessible. DeFi projects are adding agents to improve user access. AI agents will become the final-step interface connecting users to blockchain, not an optional feature.

Second, agent commerce will expand. As AI agents become standard, interactions between agents and between agents and humans will increase. Secure transaction protocols and trust mechanisms will grow in importance. Projects like Virtuals Protocol’s ACP are laying the groundwork for this.

These changes will simplify complexities in the crypto space, enhance user experience, and create new economic opportunities.