AI Fuels Crypto Boom, Focus Shifts to Real-World Use
The Key Points at a Glance
– AI agents (Artificial Intelligence) generated massive returns of up to 1000x at the end of 2023.
– Following the hype, a market correction put many projects under pressure.
– The next development phase focuses on real applications, particularly in the areas of DeFi (Decentralized Finance) and memecoin trading.
– Success will depend on the ability to achieve sustainable profits through specialized AI solutions.
The Rise of AI Agents
At the end of 2023, the crypto market experienced a real boom due to so-called AI agents. These projects utilized artificial intelligence to enable automated trading strategies and other innovative applications. Some tokens, such as Virtuals Protocol (VIRTUAL) and aixbt (AIXBT), achieved returns of up to 1000x, attracting the attention of investors worldwide.
The peak was reached in December 2023, when the market capitalization of all AI agent tokens combined exceeded $5 billion USD. However, as is common in the volatile crypto industry, a correction followed the hype. By January 2024, the market capitalization fell back to between $2 billion and $3 billion USD.
The central question remains: Was this just a temporary hype, or is a sustainable growth phase on the horizon?
The Challenge of “Roundtripping”
A common phenomenon in the crypto market is the so-called “roundtripping.” In this scenario, the price of a token rises sharply, only to later fall back to its original level. Many investors, hoping for further gains, held their positions for too long and lost the profits they had achieved.
This pattern is not unusual and highlights the cyclical nature of crypto narratives. Only projects with a strong foundation and long-term utility manage to recover after such corrections and initiate a new growth phase.
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The Next Development Phase
The first wave of AI agents was largely based on speculative promises and simple automation. However, many projects failed to deliver real applications and disappeared.
Now, a new phase is emerging: third-generation AI agents. These leverage advanced intelligence layers and self-learning models to tackle complex tasks in the crypto space. The focus is on practical applications such as optimizing DeFi strategies or automating trading algorithms.
Only projects capable of creating real added value will lead the next growth wave.
The Future of AI Agents
The success of the next generation of AI agents will largely depend on their ability to deliver measurable profits. There is significant potential, particularly in the areas of DeFi and memecoin trading:
– **DeFi Yield Farming**: AI agents could identify the best yield strategies in real-time, thereby increasing the efficiency of investments.
– **Memecoin Trading**: Trading memecoins is risky but potentially lucrative. AI agents could provide a crucial advantage through analysis, launch tracking, and automated trades.
Successful projects will be defined by their success rate, returns, and profitability. These factors will determine which AI agents dominate the next growth phase.
Our Assessment
The era of AI agents is just beginning. After the first speculative wave, the focus is now shifting to real applications and sustainable profits. Projects that succeed in delivering practical solutions for DeFi and trading have the potential to achieve long-term success.
For investors, it remains crucial to closely monitor the development of the technology and the progress of individual projects. The next growth wave will be driven by innovation and utility – and less by hype.