AI Agents After the Hype: How Specialized Automation Is Transforming Crypto and DeFi

AI Agent Market Map: Hype is Over, Technology Continues

Summary

AI agents are becoming the key interface connecting users with blockchain technology. They promise to simplify crypto operations and open up new economic opportunities.

Abstract

Interest in the AI agent market dropped sharply after token prices crashed, but development has remained steady. The DeFAI sector is regaining traction with actual product launches and specialized on-chain features. Instead of general-purpose agents, specialized agents focused on specific tasks are taking the lead. Projects like Virtuals are building infrastructure to connect and enable collaboration among agents. AI agents are set to become core components of crypto projects. Infrastructure that supports seamless communication between agents will be essential.

The End of Hype, Continuation of Technology

The crypto industry integrated AI in various ways, with AI agents attracting the most attention. At one point, the total market cap of agent-related tokens hit around $16 billion. This surge reflected strong interest but was short-lived as many projects missed development milestones and token prices dropped over 90% from their peaks.

Despite the price collapse, technology hasn't regressed. AI agents remain an important part of crypto innovation. Discussions are now more focused on practical use cases, and teams continue experimenting with new methods. This article looks at how AI agents operate within crypto and what the future might hold.

Reshaping the AI Agent Ecosystem After Hype

Early AI Agent Projects Gradually Fade from the Market

AI agents gained traction near the end of 2024, helped by tools like ElizaOS from ai16z and the G.A.M.E stack by Virtuals Protocol. Platforms like DAOS.fun and Virtuals Fun made it easier to create and tokenize agents. This led to a surge of projects with ambitious roadmaps and high investor expectations.

However, many projects were essentially advanced chatbots built on OpenAI or Anthropic models, mostly deployed on platforms like X or Telegram. Their operations resembled meme coins more than functional services.

Some exceptions exist. Projects like aixbt and Soleng partially delivered, offering token-gated features such as project analysis reports or GitHub repository evaluations. Even these struggled due to unstable revenue models tied to token prices and lagging technology compared to Web2 companies. Eventually, most projects shut down as funds dried up.

DeFAI Projects Rekindle Hope in the Field

The AI agent sector faced over-expectation and correction but DeFAI projects are proving real value. These agents automate investment strategies 24/7 and let users interact with complex DeFi services through natural language commands.

Wayfinder and HeyAnon are leading examples. Wayfinder uses specialized AI agents called "Shells" to perform on-chain transactions via dedicated wallets. Its multi-agent setup includes trading, perpetual, and contract agents, each focused on specific investment tasks. Users can easily execute cross-chain transactions or advanced strategies like leveraged dollar-cost averaging.

From Individual Agents to Agent Networks

Early projects pushed "general agents" aiming to perform all functions, but many failed to deliver. Now, the focus has shifted to agents specialized in specific domains that collaborate, much like skilled tradespeople working together.

Virtuals Protocol’s ACP exemplifies this trend with a framework for communication and task division among different agents. Other projects like Theoriq and General Impression are also working to improve agent interoperability. The market is moving from individual agents toward maximizing the value of entire agent ecosystems.

Future Scenarios for the AI Agent Market

With hype subsided, AI agents continue evolving. Two key trends stand out:

• AI Agents as Core Infrastructure: Agents are no longer optional add-ons but integral parts of crypto projects. Platforms like Nansen are developing research agents to simplify on-chain data analysis. DeFi projects are embedding agents to enhance user access. AI agents will become the primary interface between users and blockchains.
• Growth in Agent Commerce: As agents become standard, interactions between agents and humans will increase. Secure trading protocols and trust mechanisms will be critical. Projects like Virtuals Protocol’s ACP are laying the groundwork for this new commerce layer.

These developments will simplify crypto operations, improve user experience, and generate new economic opportunities.