Why AI Agents have Taken a Foothold in the Cryptocurrency Market. The Main Points of the Binance Report

What are AI agents and which cryptocurrencies use artificial intelligence in their operation? Why are their tokens worth hundreds of millions?

Experiments on the symbiosis between artificial intelligence (AI) and cryptocurrencies have reached a new level, drawing more and more attention to this trend. Analysts at Binance Research believe that the recent hype around the AI agent Terminal of Truths and the cryptocurrency GOAT, which has reached a capitalisation of $1 billion, has created the necessary momentum for the formation and growth of a new industry.

Perspectives on AI Agents

As the main driver for the development of the AI-agent-cryptocurrency symbiosis industry, experts at Binance Research highlighted the difficulties in the interaction of such bots with traditional payment structures. The implementation of these mechanisms is hampered by regulatory requirements for personal identification, which are required for the use of banking services. Cryptocurrencies, on the other hand, allow AI agents to interact with each other without restrictions and to carry out any transaction without authorisation.

In addition, according to Binance analysts, most payment systems impose various fees, making them impractical for a large number of micropayments: "A huge advantage of cryptocurrencies is the ability to make settlements on blockchain faster and often instantaneous than traditional methods, which can take a day or more to complete

The AI-Enabled Cryptocurrency Sector Reaches $4.8 billion: In the Spotlight the Virtuals Protocol and Daos.fun

The intersection of AI agents and memecoins is fast becoming one of the most intriguing trends in the cryptocurrency space. AI agents, powered by advanced algorithms and machine learning, are revolutionising the way digital assets are created, managed and interacted with. Platforms such as Virtuals Protocol are going further by enabling tokenization and monetisation of AI agents, offering a unique way for users to invest in and influence the future of these bots.

As of 13 November, the AI-enabled cryptocurrency sector was valued at $4.8 billion. Analysts at Binance cited Virtuals Protocol and Daos.fun as prominent examples in this sector.

• Virtuals Protocol - this platform enables the creation and monetisation of AI agents by offering the tokenization of these bots, similar to issuing shares. The holders of these 'shares' can vote on the future direction of the AI agent. The platform also has its own token, VIRTUAL, which has reached a capitalisation of $370 million, according to Coingecko's data as of 13 November.

The largest token based on VIRTUAL is Luna, a GOAT-like bot that communicates with users on social networks and manages its own cryptocurrency wallet on the Solana network. Luna has a capitalisation of about $65 million.

• Daos.fun - allows the creation of crypto funds managed by an AI agent. Although the platform was initially designed for humans, the developers introduced an AI element to optimise operations. Now, these bots play a key role in managing the organisations that are created.

The essence of how the platform works is to create an organisation that initially raises funds to launch an AI fund. An organisation token is then issued, and investors' funds are locked up for a certain period. Binance analysts noted that one of the projects, ai16z, was built on the basis of Daos.fun. This fund uses the parodic name of the real a16z fund, and for the first time the capitalisation of this fund exceeded $100 million after Mark Andriessen, founder of the real a16z, mentioned ai16z in posts on X. According to the platform, the capitalisation exceeded $106 million as of 13 November.

Conclusion

The prospects for a direction on the symbiosis between artificial intelligence and cryptocurrencies were also noted by analysts at another major cryptocurrency exchange platform, Coinbase. Platform analyst Jonathan King suggested that AI could be built on blockchain technology, where multiple individual AIs would start to interact in a common space, fuelling economic activity and growth.