AI agent-related tokens have seen a significant decline over the past month. According to Changpeng Zhao, the focus should be on intrinsic utility rather than launching new tokens.
Current State of AI Agent Tokens
According to CoinMarketCap data, the cumulative market capitalization of AI agent tokens has decreased by 21% over the last month, now standing at $27 billion. This decline is attributed to the broader crypto market correction and a lack of focus on AI agents' intrinsic utility.
Comments from Changpeng Zhao and Market Impact
Changpeng Zhao, the founder and former CEO of Binance, stated, 'While crypto is the currency for AI, not every agent needs its own token. Agents can take fees in an existing crypto for providing a service.' He emphasized the importance of focusing on scale and utility over tokens. These remarks come amid a significant downturn for AI cryptocurrencies, which have lost over 61% of their peak market capitalization since December.
Future of AI Agents and Potential
Despite the current decline in interest, numerous venture capitalists, such as Pantera Capital and Dragonfly, are showing interest in the future of AI agents. AI agents are already executing autonomous blockchain transactions without direct human input. A notable event occurred when an agent named Luna requested image generation services and paid for them, highlighting the unique capabilities of AI technology.
The AI cryptocurrency space may see significant growth in the future. Crypto investment experts point to potential shifts and technological advancements in this area.
