Developer Questions Long-term Popularity of AI Agents

Contrary to popular belief, AI agents will cease to be the dominant narrative in the crypto industry within the next few months, according to a developer known as Kyle.

This might be a hot take, but i genuinely think that there is a substantial chance that AI Agents will no longer be the dominant narrative in the next few months

I think
1) the select few AI agent platforms do well;
2) otherwise, many AI coins fall off

the reason I think this…

— Kyle (@0xkyle__) December 20, 2024

He sees no further prospects for this direction. Among the reasons:

• the peak in this area has been reached. The industry has progressed from AI agents writing in X to frameworks and has hit a ceiling. While there may be other innovative developments, every hyped launch recently has been derivative of an existing tool;
• market evolution. Over time, innovative developments and new narratives will emerge;
• weak long-term prospects. Today, everyone is confident that AI agents will be successful in the future. However, if the overwhelming majority have bought in now, there will be no one left to buy in the future;
• lack of liquidity. Throughout 2024, traders dominated the crypto market instead of long-term holders. Users first “push one ship” very high, then it falls, and they move on to another.

Kyle shared his investment strategy for the near future. He remains ready to analyze the AI sector—although attention to it is waning, interest may return. 

The expert intends to allocate fewer funds to this direction, as the risk-to-reward ratio does not demonstrate asymmetric potential.

Kyle will continue to analyze new narratives that are not yet as popular.

Earlier, venture firm Andreessen Horowitz highlighted the integration of AI with blockchain as a key development direction for the crypto industry in 2025.

Back in December, the organization behind the ai16z project, Eliza Labs, partnered with Stanford University to explore the integration possibilities of AI agents with digital assets.