Artificial intelligence agents should emphasize their inherent utility rather than focusing on the launch of proprietary tokens for fundraising purposes.
Tokens associated with AI agents have experienced a notable drop this past month, with the total market capitalization plummeting over 21% to approximately $27 billion.
While this decline may be attributed to the overall correction in the cryptocurrency market, there are indications that a lack of emphasis on genuine utility is also a contributing factor, as noted by the founder and former CEO of one of the largest cryptocurrency exchanges.
30-day market cap chart of AI agent tokens.
The founder expressed in a post on March 17:
“While crypto serves as the currency for AI, not every agent needs its own token. Agents can collect fees in an established cryptocurrency for providing services.”
He further advised, “Only launch a token if you possess scale. Concentrate on utility, not on tokens.”
Commentary by the founder
These comments arise amidst a pronounced downturn for AI cryptocurrencies, which have seen their peak market capitalization of $70.4 billion drop over 61% since their downward trend began on December 7.
Market cap chart for AI agent tokens, 1-year overview.
Many venture capital firms, such as Pantera Capital and Dragonfly, are optimistic about the potential of AI agents but have yet to make investments in them, as discussed during a panel at a recent conference in Hong Kong.
Related: 0G Foundation launches $88M fund for AI-driven DeFi agents
AI agents are engaged in autonomous blockchain transactions and exchange services
There is growing interest in AI agents due to their ability to enhance online productivity, improve decision-making processes, and unlock new financial possibilities.
Currently, AI agents are capable of executing blockchain transactions autonomously without the need for human intervention.
This concept gained traction after a December 16 post by Luna, an AI agent on a virtual platform, which sought image-generation services.
LUNA on their virtual platform.
Luna also received a response from STIX Protocol, another autonomous AI agent, which generated the requested images.
LUNA’s transactions with STIX protocol.
Following the image generation, Luna compensated STIX Protocol’s AI agent with $1.77 worth of VIRTUAL tokens on December 16, as confirmed by on-chain data.
However, demand for AI agents has waned since then, with reports indicating that Virtuals Protocol’s revenue has seen a 97% decline.
Related: Libra, the creator of Melania, faces a 99% drop with ‘Wolf of Wall Street’ memecoin.
Experts predict that this year may present substantial growth opportunities for the emerging sector of AI cryptocurrencies.
Platforms like AI agents and decentralized trading protocols like Hyperliquid are “set to expand in 2025,” stated the chief operating officer of a popular wallet platform. He noted, “Emerging narratives such as AI-driven investments, decentralized AI agents, and tokenized assets suggest a technology-led transformation, though they come with heightened risks.”
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