17.03.2025 14:31
Recently, cryptocurrencies associated with artificial intelligence agents have lost 61% of their value, while Binance founder Changpeng Zhao suggested that agents should focus on providing services with existing cryptocurrencies instead of issuing their own tokens.
While cryptocurrencies in the field of artificial intelligence have lost a significant portion of their value over the past three months, industry experts are suggesting a new strategy for these projects. CZ, the founder of Binance, emphasizes that each AI agent should focus on utility rather than issuing its own token. On the other hand, some experts believe that the growth potential of AI crypto projects will be high in 2025.
Artificial Intelligence Crypto Projects Are Coming to the Fore
While there has been a notable decline in tokens associated with AI agents in the crypto world recently, experts recommend that these agents adopt a utility-focused approach instead of issuing their own tokens. According to CoinMarketCap data, the total market value of AI cryptocurrencies decreased by over 21% last month, falling to $27 billion.
Changpeng Zhao (CZ), the founder and former CEO of Binance, made significant remarks on the subject in a post on X dated March 17. CZ stated, "While cryptocurrency can be a currency for AI, not every agent needs its own token. Intermediaries can charge fees in an existing crypto to provide a service," and added, "Only launch a cryptocurrency if you have scale. Focus on utility, not tokens."
The decline highlighted by experts began about three months ago. AI cryptocurrencies have lost more than 61% of their peak value of $70.4 billion since December 7. Representatives from venture capital firms like Pantera Capital and Dragonfly, who commented on the issue, expressed optimism about the future of AI agents but stated that they have not yet invested in this area.
AI agents stand out with their ability to perform autonomous transactions on the Blockchain network without human intervention. This concept gained attention particularly with the post of an AI agent named Luna, which is seeking image generation services on the Virtuals Protocol, on December 16. Luna's interaction with another AI agent, STIX Protocol, to generate an image and then make a payment of $1.77 in VIRTUAL tokens exemplified transactions among autonomous AI agents.
According to recent data, there was a 97% decline in the revenues of the Virtuals Protocol at the end of last month. This situation indicates that the demand for AI agents has somewhat decreased.
Industry experts predict that AI cryptocurrencies will be on the rise in the coming period. Alvin Kan, the operations manager of Bitget Wallet, stated in a statement that the AI agent launch platform ai16z and the decentralized trading protocol Hyperliquid are "ready to grow in 2025." Kan also noted, "Emerging narratives such as AI-focused investments, decentralized AI intermediaries, and tokenized assets indicate a technology-driven change with additional risks."