AI Tokens on the Rise

Artificial intelligence tokens are poised to achieve a market capitalisation of up to $60 billion by 2025, according to Gracy Chen, CEO of cryptocurrency exchange Bitget. These tokens, tied to AI-powered applications, are already gaining traction, with initial use cases focusing on cryptocurrency transactions such as trading and wallet management.

Chen highlighted that crypto exchanges are expected to adopt AI agents to streamline operations and enhance customer service. However, she cautioned that the technology remains immature for large-scale investment due to its reliance on human oversight. She advised investors to focus on tokens offering practical applications, such as automating tasks or replacing programmers.

Current Market Dynamics
Agentic AI tokens, a category encompassing AI-focused cryptocurrencies, currently command a market capitalisation of approximately $15 billion, with daily trading volumes nearing $875 million. This marks a significant surge, as the market cap climbed 222% in the fourth quarter of 2024, rising from under $5 billion in October to over $15 billion by year-end, according to a CoinGecko report.

The growth followed the launch of the Goatseus Maximus (GOAT) coin on the Solana blockchain in October, which helped establish Solana as a leader in the space. Solana now holds a 56.48% market share, with a capitalisation of $8.44 billion.

Future Prospects for AI in Web3
Industry leaders anticipate that AI agents will transform the Web3 landscape in the coming years. Cryptocurrency trading is expected to serve as an early proving ground for the technology. J.D. Seraphine, CEO of Web3 AI developer Raiinmaker, predicts that AI agents will assume a more significant role in decentralised communities by 2025.

VanEck’s recent report suggests that Web3 networks hosted around 10,000 AI agents in December, collectively generating millions of dollars in on-chain activities each week. This number is forecast to balloon to over 1 million AI agents by the end of 2025.

Memecoins Remain in the Lead
Despite the anticipated growth in the AI token market, memecoins are set to maintain their dominance, Chen noted. Memecoins have captured significant investor interest, accounting for nearly one-third of activity in the crypto space this year, according to a CoinGecko study.

While interest in AI-related tokens ranked second, memecoins are expected to experience another growth cycle in 2025. Their speculative nature continues to attract a broad base of investors, overshadowing the burgeoning AI token market.

As the crypto landscape evolves, both memecoins and AI tokens are likely to remain focal points, reflecting broader trends in blockchain innovation and speculative trading.