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Is the AI Agent Boom Worth Investing in 2025?

Is the AI Agent Boom Worth Investing in 2025?

Author:
Cryptonews
Published:
2025-01-20 14:33:47
12
2

  • The AI agents market surged by 322% in Q4 2024, with market capitalization jumping from $4.8 billion to $15.5 billion.
  • Major AI agents have experienced significant price corrections following their early 2025 peaks.
  • If AI agents follow the 2023-2024 meme coin index pattern, further growth may lie ahead despite current market corrections.

AI agents are emerging as a key story in the cryptocurrency market for 2025. Goatseus Maximus (GOAT), launched in October 2024 via a bot on the Solana (SOL) blockchain, was among the first tokens in this sector. The entry of several new players followed this.

According to CoinGecko’s 2024 report, the market capitalization of AI agents grew from $4.8 billion to $15.5 billion in Q4, marking an increase of 322%. This sharp rise was driven, in part, by Virtuals Protocol.

Source: CoinGecko

Despite gaining widespread attention only in Q4, VIRTUAL ranked as the top gainer of 2024, with a price increase of 23,000% during the year.

This article examines whether VIRTUAL’s momentum can continue into 2025 and explores which other AI agents might exhibit similar growth potential.

What are the top #crypto gainers of 2024?🚀Our latest study reveals that #VIRTUAL (@virtuals_io) is the top gainer in 2024 with a 23,079% return, followed by $BRETT (@BasedBrett) at 14,785% and $POPCAT (@POPCATSOLANA) at 10,459%.Read the full study: https://t.co/4V0OUXteBd pic.twitter.com/yV2LsAhgaF

— CoinGecko (@coingecko) December 27, 2024

Virtuals Protocol: The Leading AI Agent in the Crypto Market

Virtuals Protocol is one of the leading AI agents in the cryptocurrency market. CoinGecko includes Artificial Superintelligence Alliance (FET) in this category, as it has a slightly larger market capitalization.

However, Virtuals Protocol stands out as the primary platform for launching AI agents and is the name most associated with this market segment.

Excluding FET, Virtuals Protocol ranks first among AI agents by market capitalization, standing at $2.6 billion. FET follows closely with $3.1 billion.

Source: CoinGecko

According to Virtuals Protocol, since its launch in October 2024, it has accumulated 12,990,427.85 VIRTUAL tokens in revenue, which are set to be burned. This could improve the buyback-to-market cap ratio.

We have accrued 12,990,427.85 $VIRTUAL from post-bonding trading revenue since October 16th, 2024. This will go to a buyback-and-burn of the respective agent tokens across a 30-day TWAP.For a breakdown of the buyback amount for each agent token, please refer to this dashboard:… pic.twitter.com/BiAAPufllW

— Virtuals Protocol (@virtuals_io) January 15, 2025

The platform has also updated its value accrual mechanism, allocating 50% of rewards to subDAO agents.

The critical question remains: will VIRTUAL sustain its growth in 2025? Virtuals Protocol has shown significant gains, with its price rising from $0.007486 on Jan. 23, 2024, to an all-time high of $5.07 on Jan. 2, 2025.

As of Jan. 20, many AI tokens, including VIRTUAL, have faced a substantial correction. VIRTUAL’s price dropped to $2.70, about 50% lower than its recent ATH.

Source: CoinGecko

Altcoin Sherpa, a prominent analyst, predicts that many AI agents may follow the trajectory of Goatseus Maximus (GOAT). This path involves initial hype, price surges driven by listing announcements, followed by sharp declines and liquidity drops:

‘I still think you should generally do a barbell of high caps and super low caps (20m>). Anything in the middle is meh, although there are some strong mooners like PIPPIN recently. It’s hard to say. You’ll have to decide how to structure your portfolio.‘

AI16Z and AIXBT by Virtuals: Still in the Game?

AI16Z (AI16Z) is the second-largest AI agent by market capitalization after Virtuals Protocol, with a market cap of $972.4 million. The token is part of the Solana ecosystem, one of the leading blockchains for launching meme coins.

Unlike Virtuals Protocol, AI16Z is less popular. Its primary focus is venture capital for a decentralized autonomous organization (DAO), according to its official website:

‘AI16Z ($AI16Z) is a token on the Solana blockchain for an AI-powered venture capital DAO, where it serves both governance and utility functions.‘

Similar to VIRTUAL, AI16Z reached its all-time high (ATH) at the beginning of 2025. On Jan. 2, the token peaked at $2.47 but dropped by nearly 65%, falling below $1.

Source: CoinGecko

AIXBT by Virtuals ranks third in market capitalization among AI tokens. It was launched using the Virtuals Protocol and functions as an automated bot that posts cryptocurrency price predictions through its personal account on X.

Unlike many other AI agents, it provides practical utility for traders.

AIXBT is one of the few AI agents that continued its rally into 2025. The token reached its ATH of $0.9426 on Jan 16. However, its price has since declined by about 30%.

Source: CoinGecko

What’s Next for AI Agents?

Predicting the future prices of VIRTUAL, AI16Z, or AIXBT is challenging amid the current market correction. This phase may be part of a natural cycle, following the heightened attention and price surges since December 2024.

Messari researchers have drawn parallels between AI agents and meme coins, noting significant market similarities. If the AI index follows the pattern of meme coins from 2023-2024, additional upswings could be on the horizon.

Meme coins experienced a similar correction during their growth cycle in January, just as AI agents are now.

Source: Messari

However, not all AI agents are likely to reach these peaks. The market exhibits the same risks as meme coins – projects that rise quickly often face rapid declines.

A new direction for AI is emerging: DeFAI. Projects such as Griffain (GRIFFAIN) and Hey Anon (ANON) aim to integrate AI bots into decentralized finance (DeFi). These platforms offer more practical applications, potentially simplifying DeFi for users and increasing liquidity.

Despite the promise, caution is advised. The sector is still developing, and controversial players like Swarms (SWARMS) highlight potential risks. Whether DeFAI can establish itself remains to be seen.

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