AI Agent Tokens Slump: Sharp AI Token Decline Contrasts Bitcoin’s Stability at $95K
While the largest cryptocurrency, bitcoin, has continued to trade sideways, the market for AI agent tokens has seen a noticeable fall over the past week. The price of ai16z, a native token that supports the Eliza OS agent architecture and DAO-run venture fund, has dropped by half in the past week, from $2.26 to $0.9241, bringing its market valuation down to $1.01 billion. Over the past day, the token has also dropped by 18%.
In a similar vein, the Virtuals protocol token, which enables users to build decentralized AI-powered digital assistants, dropped 16.35% yesterday to $2.33 as of this writing. From a peak of more than $5 last week, it fell 43%, bringing its market capitalization down to roughly $1.5 billion. This is in sharp contrast to the performance of bitcoin, which has been steady at about $95,000 over the previous week.
Haseeb Qureshi Warns AI Agent Hype May Fade as Market Corrects
In early January, their total market value reached over $15 billion due to the widespread use of AI agent tokens. Since then, though, the market has dropped back to $12.55 billion. Given market volatility and the need to differentiate between meme coins marketed as AI projects and truly autonomous agent software, the most recent decline in the pricing of AI agent tokens represents a correction.
Haseeb Qureshi, managing partner at Dragonfly, recently forecasted that this year would be dominated by the AI agent mania since it is the most social but that the novelty would soon wear off. Besides posting on X, Qureshi claimed that these are hardly agentic and are more akin to chatbots with meme coins connected.
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