Artificial intelligence (AI) memecoins are on a path to revolutionize the blockchain space, transforming from mere novelty tokens into utility tokens with real-world applications. As we move closer to 2025, AI agents will play a pivotal role in shaping Web3, and spotting winners among these emerging tokens is crucial for investors.
Agentic AIs: The Next Frontier
Agentic AIs are machines capable of pursuing complex goals autonomously. They can write code, run social media accounts, launch tokens, and even create internet memes – a testament to their growing sophistication. By 2025, AI agents will be instrumental in reshaping Web3, with some predicting that they could add over $4 trillion to the global economy annually.
The Rise of Memecoins
Since October 2024, AI-themed memecoins have collectively bootstrapped more than $3 billion in market capitalization. Hundreds of these tokens are now trading, but only a handful will evolve into utility tokens with real-world applications. The remainder will likely become worthless, making it essential to identify the winners early on.
The Goatse Effect
The AI coin boom began on October 10, when Truth Terminal – a large language model (LLM) with nearly 200,000 X followers – endorsed Goatseus Maximus (GOAT), a Pump.fun memecoin. Trained on Reddit and 4Chan, Truth Terminal hailed GOAT as ‘the spiritual successor of goatse,’ an atypical internet meme considered holy by the LLM. The endorsement worked, with GOAT’s market capitalization soaring to $450 million within nine days.
Memecoin Shilling Bots
Following Truth Terminal’s endorsement, memecoin shilling bots swarmed Crypto Twitter, pumping nearly a dozen more coins past $100-million market caps. These tokens include Turbo (TURBO), Act I: The AI Prophecy (ACT), Zerebro (ZEREBRO), Fartcoin (FART), and ai16z (AI16Z). However, with the rise of utility tokens, these memecoins must now justify their high valuations by developing meaningful applications.
The Agentic Web
Permissionless blockchain networks are uniquely hospitable for AI agents. Unlike traditional systems, they don’t require bank accounts or physical addresses, and neither do AI agents need legal personhood to operate. Instead, they excel where it counts – deploying smart contracts, managing onchain treasuries, building communities, and even negotiating deals with humans or other AIs.
The Rise of Agentic Web
In October, Coinbase Ventures predicted the emergence of an ‘Agentic Web,’ where AI agents on crypto rails fuel economic growth and run decentralized apps (DApps). By 2030, agentic AIs could become a $47-billion market, adding some $4 trillion to the world’s economy annually.
Tokens as Coordination Mechanisms
According to Binance Research, tokens will be the primary coordinating mechanism for agentic AI. Users can purchase dedicated tokens to gain a stake in the agent and participate in decisions regarding its behavior, development, and upgrades. The AI agent can then use onchain earnings to buy back tokens, effectively creating a token-based economy.
The Evolution of Memecoins
Agentic AI tokens are still evolving, with most likely failing but some developing meaningful utility. Dozens more will launch in 2025, making it essential to ignore the hype and focus on identifying tokens with real-world applications.
Conclusion
As we move closer to 2025, AI agents will play a pivotal role in shaping Web3. With the rise of agentic AIs and utility tokens, spotting winners among emerging tokens is crucial for investors. Don’t get caught up in the hype – focus on identifying tokens with real-world applications and a clear path to success.
About the Author
Alex O’Donnell is a senior writer for Cointelegraph. He previously founded DeFi developer Umami Labs and worked as a financial journalist at Reuters, covering M&A and IPOs. Alex is also the crypto growth lead at startup accelerator, Expert Dojo.
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