# AI Agents Stir Up the Cryptocurrency World

As chatbots emerged as key players in AI technology, AI agents are now making waves in the cryptocurrency industry. Unlike simple Q&A chatbots, AI agents autonomously perform tasks users need. They promote cryptocurrencies, interact with communities, and continue operating even while users focus on other activities. The industry buzzes with debate over whether AI agents are a temporary trend or heralding an ‘AI agent supercycle’ set to open a new bull market.

# What Are AI Agents?

AI agents are autonomous programs that make decisions and execute tasks based on their objectives. Unlike chatbots that respond to human inputs, AI agents independently gather and learn from data, make decisions, and take actions. These characteristics enable AI agents to be utilized in various areas of the cryptocurrency industry, from content creation and trading automation to market analysis. Notably, the AI agent ‘aixbt’ dominated Crypto Twitter within a month of its inception, recording the highest ‘mindshare’ on the platform.

.@aixbt_agent now has the most mindshare on CT.
Flipping Ansem for the top spot. pic.twitter.com/ZyIQT0uATT
— Kaito AI ???? (@_kaitoai) November 29, 2024

# Why the Attention?

Unlike the stock market, the cryptocurrency market operates 24/7. Success in this environment hinges on speed, automation, and data-driven decision-making. AI agents fit these needs perfectly by continuously monitoring, analyzing, and executing without human intervention. KuCoin emphasized through its blog that AI agents offer advantages in various areas, including △ trade automation △ smart contract management △ NFT creation and management △ optimization of decentralized finance (DeFi) operations.

# How AI Agents Work

The operation of AI agents can be summarized in four stages: △ data collection △ reinforcement learning △ decision-making △ execution. While chatbots rely on large language models (LLM), AI agents function independently without human interaction, continually learning and evolving. This capability allows them to quickly adapt to market volatility and make optimal decisions.

# The Evolution of AI Agents: Launch for Everyone

The time has come when even those without technical backgrounds can easily launch AI agents. Virtuals Protocol, for example, allows users to create agents by filling out a simple form. After providing △ a name △ a token ticker △ a description △ a profile picture, users can create a pool on Uniswap with initial liquidity, completing the launch by setting governance.

# On-Chain AI Agent Deployment Competition

The competition among platform layers for deploying AI agents is intense. Coinbase’s Layer 2 chain, Base, features ‘Based Agent,’ which offers AI agents their own wallets to handle all on-chain tasks automatically. This competition extends beyond Base. Injective and Solana have also announced software development kits (SDKs) for launching AI agents, joining the race.

# Beyond Deployment: Expanding the AI Agent Ecosystem

While various AI agents are being created on different platforms, this is only the first step. Building ecosystems where AI agents can grow and be utilized continuously is a more critical challenge. Yatharth Jain, Co-Founder of Cluster Protocol, a consortium layer for AI agents, likened popular AI agents to “ChatGPT wrappers with custom knowledge bases,” highlighting their limitations. He emphasized that public contributions from community members are crucial for continuous learning and refining trading functions, underscoring that community engagement is key to maintaining a healthy knowledge base.

# Top 6 AI Agent Projects to Watch

Various AI agents are being created, emerging as powerful narratives poised to lead the next bull market. Evidence of this potential came when Virtuals Protocol hit an all-time high on New Year’s Day 2025. Here are the top AI agent projects capturing the cryptocurrency market’s attention.

## Artificial Superintelligence Alliance (ASI)

Created through the collaboration of Fetch.ai, SingularityNET, and Ocean Protocol, ASI aims to democratize access to advanced AI technology. Utilizing machine learning for task automation, ASI enhances energy efficiency, simplifies logistics management, and optimizes financial transactions, maintaining high efficiency with minimal human intervention.

## Virtuals Protocol – Decentralized Creation and Ownership of AI Agents

Operating on the Base blockchain, Virtuals Protocol supports the decentralized creation and collective ownership of AI agents, focusing on the gaming and entertainment sectors. Users can develop AI-based virtual influencers and interactive NFTs, which autonomously engage with audiences across multiple platforms. The protocol adopts a buyback-and-burn mechanism for revenue distribution, potentially increasing the value of remaining tokens and providing financial benefits to investors.

## ai16z – Decentralized AI-based Venture Capital Fund

Managed by the AI agent “Marc AIndreessen,” modeled after prominent venture capitalist Marc Andreessen, ai16z operates on the Solana blockchain as a decentralized venture capital fund. Launched on the DAOS.fun platform, it aims to democratize investment opportunities using AI to analyze market trends and execute trades. Token holders can submit and discuss investment proposals, with influence weighted by token quantity and past recommendation success rates. ai16z quickly became the largest fund on DAOS.fun, achieving a market cap of approximately 100 million dollars shortly after launch.

## AIXBT – AI-Based Cryptocurrency Market Intelligence

Based on Virtuals Protocol, AIXBT provides cryptocurrency market intelligence. This agent monitors real-time market trends and analyzes data from over four hundred key opinion leaders (KOLs) to capture emerging market narratives. It performs technical analyses of various cryptocurrencies, offering actionable insights to help users make informed decisions. AIXBT achieved a market cap of approximately 200 million dollars shortly after launch, reflecting strong market interest and demand for AI-based cryptocurrency solutions.

## SUI Agents – AI Agents on the Sui Blockchain

Sui Agents (SUIAI) is an AI-based platform on the Sui blockchain, enabling creators, brands, and communities to develop and deploy AI agents easily. By combining generative AI and Web3 technology, it simplifies the creation of on-chain AI agents for use on social media platforms like Twitter, enhancing audience engagement and validating innovative projects. SUI Agents provide zero-code generation infrastructure, allowing users without programming knowledge to create AI agents.

## GAM3S.GG – Web3 Gaming Super App

GAM3S.GG is a Web3-based gaming super app offering specialized content for blockchain games, including reviews, guides, news, quests, and an annual awards ceremony. With over five hundred thousand registered users, this platform aims to provide seamless access to distributed gaming content, attracting more gamers to the Web3 ecosystem.

# Challenges in Adopting AI Agents

While AI agents have the potential to revolutionize the cryptocurrency ecosystem, several challenges need addressing.

**Blockchain Scalability**: Handling large-scale, real-time interactions with AI agents requires blockchain scalability. Solutions like Layer 2 networks and alternative blockchains are vital.

**AI Hallucination**: Despite their power, AI models can make errors, particularly in high-risk scenarios like trading or smart contract auditing, where minor calculation mistakes can lead to substantial financial losses.

**Regulatory and Ethical Issues**: AI agents could be misused for unethical activities like market manipulation or fraud. Ensuring ethical decision-making free from biases is also a critical consideration.

# The AI Agent Supercycle Has Begun

AI agents have already become a core technology in the cryptocurrency and blockchain industry. Yet, this is just the beginning. AI agents are set to play increasingly vital roles in trade automation, knowledge base management, and community activation. However, this advancement comes with challenges like ensuring data quality, preventing technical failures, and addressing security vulnerabilities, highlighting the need for technological improvements and risk management to ensure ecosystem stability and reliability. It is clear the AI agent supercycle has commenced, accelerating and expanding the transformative impact on the cryptocurrency and blockchain sectors.