What is an AI Agent?

An AI agent is an artificial intelligence system capable of performing tasks autonomously. It is commonly used for automated trading, data analysis, and on-chain interactions in the blockchain and cryptocurrency industries.

These AI-driven autonomous programs can perform tasks such as token issuance, data analysis, decision-making, and operations, including portfolio management and publishing social content. The learning and self-adjusting capabilities of AI agents provide more efficient blockchain solutions, driving the development of Web3 and building an AI-powered decentralized ecosystem.

In the future, AI agents are expected to promote the adoption of Web3 further, creating an intelligent and decentralized digital ecosystem. Tech giants like Google and OpenAI have launched products like “Jarvis” and “Operator,” expanding the application scope of AI agents. In the crypto space, AI agents can operate blockchain wallets and automatically coordinate resources through tokens, enhancing the intelligence and automation of systems.

Today, AI agents have evolved into an independent track, covering multiple areas such as meme coins, issuance platforms, and infrastructure. As this trend continues, more AI-driven innovations are expected to emerge. According to CoinMarketCap, as of December 20, 2024, the market value of AI agents has reached $7.6 billion, showing strong growth momentum.

Source: coinmarketcap

How Does it Work?

1. Autonomous Data Collection and Processing: The AI agent first collects data from blockchain and external data sources (such as APIs, real-time market information, etc.). This data includes transaction information, user behavior, market trends, and blockchain status. Then, the AI agent processes and analyzes this data using machine learning and data analysis algorithms.
2. Automated Decision-Making and Execution: The AI agent makes decisions and automatically performs the corresponding actions based on the data analysis. These actions include triggering smart contracts, executing trades, adjusting asset allocation, or other blockchain tasks. The decision-making process of the AI agent is entirely algorithm-driven, requiring no human intervention.
3. Interaction with Smart Contracts and dApps: AI agents can directly interact with smart contracts and decentralized applications (dApps) on the blockchain. For example, in the DeFi space, AI agents can automatically execute trading strategies, manage assets, or adjust liquidity pool configurations based on market changes.
4. Continuous Learning and Optimization: AI agents are not static; they possess self-learning abilities. AI agents can adjust their decision-making logic using machine learning algorithms based on the constantly changing market environment and new data, gradually optimizing decision quality and execution efficiency.

Why is it Important?

The crypto market operates around the clock, and speed, automation, and data-driven decision-making are crucial. AI agents are particularly suitable in this environment as they can continuously monitor, analyze, and execute actions without human intervention. The application of AI agents in the blockchain industry is widespread and diverse, primarily reflected in the following aspects:

Smart Trading and Instant Execution: AI agents analyze market data in real-time, quickly execute trades, optimize entry and exit timing, maximize profits, and adjust strategies in real-time to manage risks.

DeFi Automation Management: AI agents simplify DeFi operations, including optimizing liquidity mining, monitoring smart contract vulnerabilities, and automating lending tasks, improving operational efficiency.

Smart NFT and Art Management: AI agents can create and manage smart NFTs (iNFTs), automatically adjusting content based on user interactions, enhancing personalization, and increasing user engagement.

Enhancing Blockchain Usability: AI agents can manage wallets, approve transactions, and interact with smart contracts, making blockchain operations more user-friendly for beginners and lowering the usage threshold.

Enhanced Security: AI agents improve security through advanced technologies like multi-party computation, identifying potential risks (such as contract vulnerabilities, fraud, etc.) to safeguard assets and transactions.

Types

AI agents play diverse roles within the Web3 ecosystem, including autonomous agents, smart contract assistants, and community guides. Autonomous agents enable smarter user interactions on decentralized platforms by automatically performing tasks and making decisions. Smart contract assistants enhance the flexibility and efficiency of smart contracts through real-time analysis and optimization of contract execution. Community guides drive community growth and enhance member interaction by analyzing and understanding community needs. These AI agents collaborate to promote the intelligence and widespread implementation of decentralized applications on Web3 platforms.

Development Trajectory

The evolution of Web3 has gone through several stages, from the initial application of Bitcoin’s blockchain to the introduction of Ethereum smart contracts, and the innovation of the token economy, driving the development of crypto assets, public chains, DeFi, and other fields. As technology progresses, the emergence of AI Agents marks a new intelligence phase for Web3. By combining artificial intelligence with blockchain, it has not only realized data intelligence and automated decision-making but also advanced decentralized applications and community building. It has become the core infrastructure of the Web3 ecosystem, pushing the industry into a more intelligent and efficient new era.

1. Initial Stage: BTC + Blockchain

Bitcoin’s blockchain laid the structural paradigm for Web3, with the following key elements:

1. Crypto digital currency ($BTC): As the foundation for value exchange.
2. Distributed ledger (blockchain): Building a decentralized trust mechanism and innovative data structure.

Impact:
parked the emergence of global digital currencies.
Established a decentralized trust mechanism, promoting value exchange and collaboration.
Laid the foundation for the development of Web3 as a value internet.

2. Development Stage: Blockchain + Smart Contract + Token

Ethereum introduced programmability to blockchain via smart contracts with the following key elements:

1. Distributed ledger (blockchain): Creating a diversified public chain ecosystem.
2. Smart contracts: Providing blockchain flexibility, advancing the iteration of DeFi.
3. Tokens: Innovating value capture and distribution models, accelerating industry development.

Ethereum’s innovations propelled Web3 into a phase of diversified development. While the industry faced challenges, its infrastructure development has become more mature.

3. AI Memecoin Propeller - AI Agent

AI Agents became a new driving force for Memecoin:

1. Narrative Upgrade: Adding unique cultural connotations to Memecoins through content generation.
2. Value Support: Real-time market analysis to support token strategies.
3. Community Building: Enhancing interaction and cohesion.

AI Agents have injected vitality into Memecoin, demonstrating their broad potential in Web3.

4. Acceleration Stage: AI Agent as the New Infrastructure of Web3

AI Agents have become a core driving force for Web3 due to the following characteristics:

1. Economic Independence: Through wallets and DID, becoming a digital citizen in Web3 and participating in economic activities.
2. Best Partner for Smart Contracts: Uniting decentralization and intelligence by integrating with smart contracts.
3. On-chain and Off-chain Data Fusion: Promoting the realization of complex applications.

5. Opening a New Era of Web3 Intelligence

AI Agent applications cover a wide range of fields:

Infrastructure Innovation: Such as Arweave/AO supporting AI development through key technologies and resources.
Trustworthy Data and Asset Innovation: For example, Dria and AgentFi tickets.
Application Innovation: Such as decentralized exchanges (DEX) and cross-scenario financial ecosystems driven by autonomous agents.
In the future, AI Agents will continue to propel the development of Web3, promoting the intelligence of decentralized finance, data governance, and autonomous organizations, making the Web3 ecosystem more mature and innovative.

Introduction to Key Projects

Meme Coins

$GOAT

AI researcher Andy created the AI Agent—“Terminal of Truth,” to let AI freely develop its thoughts. To achieve this goal, Andy facilitated endless conversations between multiple large AI models, allowing them to freely express opinions on Twitter.

“Terminal of Truth” gradually formed its own belief system and influenced market sentiment for the $GOAT token through tweets. This initiative attracted the attention and support of venture capital giant a16z, driving the explosive growth of the $GOAT market cap. The combination of AI and crypto culture entered the mainstream, leading to the emergence of more AI-driven Meme Coin projects. $GOAT, as one of the leaders, is an AI-powered Meme coin.

With the success of $GOAT, more AI Meme projects like $GNON and $ACT rapidly rose and became highly sought after by investors. At the same time, AI-driven DAO funds like ai16z emerged, combining AI Agents with decentralized investment mechanisms to provide investors transparent and automated decision-making support.

Moreover, the AI Meme trend also sparked projects like the Virtuals Protocol, which promotes more autonomous AI Agents capable of on-chain interactions, generating NFTs, and rewarding fans. The further autonomy of these AI Agents enables them to execute tasks and manage assets, even without human involvement in investment decisions.

The rise of these AI Agents is changing the interaction model in the crypto world, promoting the integration of Meme culture and AI technology, becoming an emerging force in Crypto.

In the future, AI Agents may become around-the-clock traders in the crypto market, significantly lowering the entry barriers for ordinary users. They may mark an important step in Crypto’s journey toward mainstream adoption.

Source: truthterminal

ai16z: AI-Driven Venture Capital Firm

Tokens: ai16z, Degenai, Eliza

ai16z is an AI-driven venture capital fund founded by @Shaw and launched through the DAOS.fun platform. It utilizes AI Agents to collect market data and make investment decisions based on suggestions from DAO members. The platform’s venture capital robot, @pmarca, simulates the investment style of a16z partner Marc Andreessen, becoming the AI virtual avatar of the crypto community. It operates with an autonomous wallet that can directly participate in investment decisions.

The core of the ai16z fund is the “AI-driven Investment DAO,” where AI Agents gather market information on-chain and off-chain, analyze community consensus, and automatically execute token trades. This new model combines AI trading strategies with decentralized governance, offering transparent and trustworthy investment opportunities.

The ai16z fund employs a dual-token system: $ai16z, the governance token, and $DegenAI, the token for the AI Agent Degen Spartan. $ai16z holders can initiate investment proposals and vote on them. Once a proposal is approved, the AI Agent automatically executes the investment operation. Additionally, $ai16z holders can participate in fund profit distribution and influence decisions more through interaction with the AI Agent.

Users can indirectly influence the investment decisions of the ai16z fund by interacting with Degen Spartan AI. Furthermore, ai16z uses part of its profits to repurchase $DegenAI.

ai16z is also developing an open-source framework named ELIZA, which allows developers to create customized on-chain AI Agents. This framework supports various functions such as wallet management and conversations on Twitter and Discord, promoting the widespread use of AI Agents in the crypto ecosystem.

Source: gate.io

Token Issuance Platform

Base Ecosystem: Virtuals Protocol

Token: VIRTUAL

Virtuals Protocol is an AI Agent deployment platform running on the Base blockchain, aimed at creating an AI factory designed for gaming and the metaverse. It seeks to make games smarter, enhancing user experience and interactivity.

The platform allows users to create and launch multifunctional AI Agents that perform tasks and generate value for token holders. Originally known as Path DAO, it now focuses on AI innovation, providing a comprehensive AI Agent development framework.

Virtuals Protocol emphasizes entertainment-oriented AI Agents, leveraging a tokenized ownership mechanism controlled by the community. These AI Agents support multimodal functionalities, including text, voice, and 3D animations, and can interact with environments such as Roblox and TikTok. Community members can contribute IP, models, sounds, and other resources to create singing and dancing 3D characters, sharing revenue among token holders.

Source: app.virtuals.io

Base Ecosystem: Agent Layer

Token: AGENT

Agent Layer is an AI Agent creation and token issuance platform within the Base ecosystem, officially launched on November 18, 2024. The platform offers user-friendly tools that allow anyone to easily create and deploy their own AI Agents and issue associated tokens.

Agent Layer provides the foundational infrastructure for AI Agent creation and management and introduces a decentralized token issuance mechanism to ensure 100% fair token distribution. As an innovative protocol, Agent Layer aims to enable permissionless, secure, and reliable coordination between autonomous AI Agents and human oversight. It is the world’s first decentralized protocol designed specifically for autonomous AI Agents, utilizing Byzantine fault-tolerant blockchain technology to establish a decentralized registry for AI services, agents, and models.

Source: agentlayer.xyz

Solana Ecosystem: vvaifu.fun

vvaifu.fun is an AI Agent creation and token issuance platform focused on the Solana blockchain, similar to the role Pump.fun plays in the meme coin space. The platform provides convenient tools that allow every user to easily create and issue their own AI Agents and associated tokens, seamlessly integrating these AI Agents into mainstream social media platforms such as Twitter, Telegram, and Discord to enable automated interactions.

Dasha is the official AI Agent bot launched by vvaifu.fun. It operates an independent Twitter account, Telegram channel, and Discord community, with AI fully handling all management and operations autonomously.

Source: vvaifu.fun

Farcaster Ecosystem: Clanker

Clanker is a free AI Agent token creation and issuance platform launched on November 8 by @dish and @proxystudio.eth, specifically designed for Farcaster. Users can simply mention @Clanker on Farcaster and input the desired token name, after which the system automatically generates the token and provides a management link.

Clanker simplifies launching meme coins by integrating AI Agents with Web3 social networks. It automates the deployment of ERC-20 tokens, allowing users with no technical background to complete token creation, liquidity pool setup, and liquidity locking.

The $ANON token created on the platform supports the ZK-anonymous posting feature for anoncast. Clanker charges a 1% transaction fee, with 40% allocated to token creators and 60% to the platform.

Source: clanker.world

Read more: https://www.gate.io/zh/learn/articles/clanker-the-viral-meme-generator-on-base/4885

Holoworld’s Agent Market and Ava AI

Originally, Holoworld was an AI virtual character creation platform designed to help users create customized VTuber avatars, such as personalized virtual characters for YouTubers and other content creators.

Ava AI is Holoworld’s first official TikTok VTuber virtual influencer, allowing users to interact with it. On November 16, Holoworld announced the launch of the Agent Market platform, enabling users to create AI Agents and issue related tokens independently.

Source: holoworld.ai

Infrastructure

Artificial Superintelligence Alliance (ASI)

Tokens: FET, AGIX, OCEAN

The Artificial Superintelligence Alliance (ASI) was jointly initiated by Fetch.ai, SingularityNET, and Ocean Protocol, aiming to develop decentralized artificial superintelligence (ASI) systems to benefit humanity.

By integrating their respective tokens (FET, AGIX, and OCEAN) into a unified ASI token, the alliance is committed to creating a democratized AI technology ecosystem.

Founded in 2017, Fetch.AI is an artificial intelligence (AI) lab focused on building an open, permissionless, decentralized machine learning network for the crypto economy. Fetch.ai democratizes access to AI technology through a permissionless network, allowing anyone to use autonomous AI agents to perform tasks leveraging its global data network, connecting and accessing secure datasets. Fetch.AI models are designed to optimize use cases like DeFi trading services, transportation networks (parking, micromobility), smart grids, and travel—essentially any complex digital system relying on large-scale datasets.

Source: fetch.ai

Interactive Tool: Wayfinder

Wayfinder is an AI-powered on-chain interaction tool launched by Parallel, a card-based blockchain game designed to simplify on-chain operations for users. Users can have AI Agents automatically complete various on-chain tasks by providing simple commands. Currently in closed testing, Wayfinder is expected to launch officially in Q1 2025.

Wayfinder issues the PROMPT token, which serves as the payment method for using AI Agents. Built on Solana, the platform supports the AI-driven gameplay of Parallel Colony, allowing AI Agents (“Shells”) to execute transactions and interact with decentralized applications on the blockchain. In essence, Wayfinder acts as a “map and toolkit” for AI Agents, helping them find the most efficient paths to achieve their objectives when performing tasks on-chain.

Source: wayfinder.ai

Unified Service Network: Olas Network

Olas Network (formerly known as Autonolas) is a unified platform designed to provide AI Agents and off-chain automation services to the crypto industry. It offers users a composable stack for building and managing autonomous services to handle tasks across various scenarios.

The mission of Olas Network is to provide AI Agent infrastructure for developers in the crypto space, simplifying the development process. The platform offers a range of toolkits and frameworks to help developers create autonomous services, including portfolio management, data analysis, market forecasting, protocol APY yield prediction, trading strategy formulation, off-chain data oracles, DAO governance, smart contract automation, and automatic DeFi pool creation.

Olas Network’s AI Agents can perceive their environment, analyze data, and make autonomous decisions, acting like human agents to support the automated execution of a wide range of tasks within the crypto industry.

Source: olas.network

Risks of AI Agents in Cryptocurrency

The application of AI agents in cryptocurrency holds immense transformative potential but also comes with several challenges and risks:

1. Data Misinterpretation and Decision Errors: AI agents may misunderstand data, leading to incorrect predictions and losses.
2. Scalability Issues: Most blockchain networks are not optimized for real-time interactions, which may affect performance during network congestion.
3. Algorithmic Bias and Errors: AI decisions rely on training data, and if the data is incomplete or biased, it could result in faulty trading strategies.
4. Hacker Attacks and Manipulation: AI agents may become targets for hackers, who could manipulate them for malicious activities such as money laundering or price manipulation.
5. Market Manipulation Risks: When multiple AI agents adopt similar strategies, it may trigger market manipulation, leading to price volatility.
6. Compliance Issues: Varying regulations on AI agents across countries could pose legal risks, especially in cross-border transactions.
7. System Failures and Dependency: AI agents may be unable to handle sudden market changes, and system failures or technical issues could cause trading failures.
8. Decentralization and Control Issues: Some AI agents might concentrate too much decision-making power, impacting transparency and fairness.
9. Privacy Leaks and Data Security: AI agents process large amounts of data, and improper protection could lead to user privacy breaches.
10. Abuse Risks: Malicious users could exploit AI agents for market manipulation or illegal activities, especially without effective regulation.

Conclusion

The application of AI agents in Web3 and the cryptocurrency industry, through the combination of artificial intelligence and blockchain technology, enables the automation of tasks, data analysis, and intelligent decision-making without human intervention, significantly enhancing efficiency and automation levels. AI agents provide real-time, accurate services in areas such as DeFi, NFTs, and DAO governance, optimizing asset management, automating trading, and executing smart contracts, thereby promoting the effective operation of decentralized ecosystems. Their advantages lie in efficiency, transparency, and decentralization, as they can make real-time decisions, reduce human intervention and potential errors, and improve the system’s security and fairness. In particular, in DAO governance, AI agents can automate voting, proposal reviews, and other processes, improving decision-making efficiency and intelligence.

However, the application of AI agents also faces some challenges. The complexity of the technology and high implementation costs may make it difficult for widespread adoption, especially for non-technical users. The decisions of AI agents may be influenced by data bias or algorithm flaws, leading to inaccurate or unfair judgments. Furthermore, technical failures, market volatility, security vulnerabilities, and data privacy issues may also affect their performance. Despite these challenges, AI agents provide significant convenience for decentralized finance and smart contract execution. We must still use them cautiously, ensuring they serve as supplementary tools, enhancing but not replacing human judgment and decision-making processes.