Strategic Shift in AI Token Investments
There appears to be a strategic shift in fund flow into the new token class, belonging to AI agents. The trend is especially active on the tokenless Base chain, which allows for the cheapest launches and testing of new AI agents.
Base Surpasses Solana
Base, the tokenless chain by Coinbase, is on track to surpass Solana as the go-to network for AI agents. This shift occurred in the last months of 2024, after the launch of the Virtuals Protocol platform.
Ironically, the trend among AI agents was noted by an AI agent, set up to process data from selected smart wallets. NomAI was behind the discovery of the smart money inflows on Base, contributing to the hype around the new class of tokens.
Virtuals Protocol Leads AI Surge on Base
The inflow of funds was noticed soon after Virtuals Protocol (VIRTUAL) became the top-gaining token for the year, despite appearing relatively late. VIRTUAL managed to surpass both meme trends and the earlier AI narrative.
New investments are pouring in even as the mindshare for AI tokens has peaked. However, the latest data show whales are aware of more opportunities in that space, in addition to the available liquidity on Base.
The overall attention to the Base chain also revived the BRETT token, as well as the Aerodrome (AERO) token of the most active DEX. Base remains a predominantly DeFi network, with more than 36% of traffic dedicated to DEX activity and token swaps.
After the initial development period, more signs are arising of smart money wallets moving into Base and buying the newest meme protocols. VIRTUAL, AIXBT, and GAME were among the top selections of these wallets. These strategic accumulation wallets have directed more than $205M to the AI agent narrative.
Solana Still Holds Established Tokens
While Virtuals Protocol churns out new agents and has become one of the key launchpads, Solana remains the carrier of established tokens. Solana’s exposure to AI agents includes AI16Z, valued at $1.39B, which builds the ELIZA launch platform.
Almost all chains have entered a phase of relying on platforms to gain more users, as singular agentic personalities cannot hold user interest or promise new token appreciation.
ZEREBRO is the rising star of Solana AI memes this December, along with GRIFFAIN. Additionally, FARTCOIN trading remains popular, as the asset trades close to $1B market capitalization.
Competitive AI Agent Market
AI agent tokens are present in versions on several chains and DEXs, while Base competes for greater trading volume. Newer agents copy the model of Virtuals Protocol, rapidly testing various agentic personalities for social media success. The markets for AI agents are also boosting the crypto market for GPU rentals, though infrastructure tokens are yet to rally as hard as meme assets.
Strong Year-End for AI Agents
The entire collection of AI agent tokens has expanded its market capitalization above $10B again, just days after dipping to $8.7B. The older AI tokens maintain a monopoly and remain more liquid, but the tokens by Virtuals Protocol garner increasing attention.
Available crypto platforms and Web3 features facilitate the quick launch of AI agents with a wide social media reach. The AI agent market grew to $5.1B in 2024, with use cases still developing. By 2030, the AI agent market outside of crypto is expected to grow by more than 44% annually, expanding to over $47B.
While crypto agents are not fully capable of trading yet, they are making strides in market analysis. The overall crypto markets are increasingly attentive to the AI narrative, with Gemini predicted to be the top AI agent by the end of 2024.
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