Top 10 Predictions for the Encryption AI Industry in 2025

With the booming development of the AI industry, the fusion of encryption and AI has also rapidly emerged. A researcher focused on this field has made 10 bold predictions for 2025. Here are the detailed contents of the predictions:

1. The total market value of encryption AI tokens will reach 150 billion USD.

Currently, encryption AI tokens only account for 2.9% of the market value of altcoins, but this ratio will change rapidly. AI covers multiple fields from smart contract platforms to memes, DePIN, Agent platforms, data networks, and smart coordination layers, and its market position will be no less than that of DeFi and memes.

Reasons for confident predictions:

• encryption AI is at the convergence of two of the most powerful technologies.
• There may be a global AI frenzy, and Web2 capital is starting to pay attention to decentralized AI infrastructure.
• Retail investors can easily understand the concept of AI and can invest through tokens, which may trigger a meme-like frenzy.

2. Bittensor will rise again

As a veteran project in the encryption AI field, Bittensor(TAO) has been online for many years, but its token price has remained at the level of a year ago. Currently, its Digital Hivemind( has quietly achieved a leap: lower registration fees for more subnets, performance surpassing Web2 peers, and the introduction of EVM compatibility.

The reason why the TAO token did not rise:

• Inflation plan is radical
• The market is more focused on the Agent platform.

dTAO) is expected to launch in Q1 2025, and ( could be a turning point. Each subnet will have its own token, and the relative price will determine the emission allocation.

The reason for Bittensor's comeback:

• Market-based emission mechanism
• Investors can deploy capital for specific subnets.
• EVM integration attracts more developers

3. The calculation market will become the next "L1 market"

Currently, the demand for computation is growing exponentially, and traditional infrastructure is struggling to cope. The decentralized computing layer provides raw computing power in a verifiable and cost-effective manner. Startups like Spheron, Gensyn, Atoma, and Kuzco are building a solid foundation.

Similarities with the L1 market:

• Competition similar to L1 will emerge between protocols.
• Expected to attract a portion of the traditional cloud computing market share

Winners will dominate the new field, focusing on reliability, cost-effectiveness, and developer-friendliness.

4. AI agents will dominate blockchain transactions

By the end of 2025, 90% of on-chain transactions will be executed by AI agents rather than direct human operations. These agents will continuously rebalance liquidity pools, allocate rewards, or execute small payments based on real-time data.

The infrastructure built over the past seven years ) L1, rollup, DeFi, NFT ( has paved the way for AI to run on the chain.

The reason for this transformation:

• Reduce human errors
• More frequent small payments
• Users are willing to give up direct control to reduce hassle.

As agents dominate transactions, there is a need for new governance mechanisms, analysis platforms, and auditing tools.

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5. Agent Clusters Will Rise

The Agent cluster allows AI agents networks to exchange information, negotiate, and collaborate on decisions. It can be viewed as a decentralized collection of specialized models, with each model contributing expertise for more complex tasks.

For example:

• Coordinate distributed computing resources
• Real-time verification of information sources

The universal communication standard is crucial for the development of clusters. Teams such as Story Protocol, FXN, Zerebro, and ai16z/ELIZA are laying the foundation for this.

Decentralization plays a key role in this field, making the system more resilient and adaptable.

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6. The encryption AI work team will be a hybrid of humans and machines.

In the future, we will work alongside AI agents as equal collaborators, who have autonomy, responsibilities, and even salaries. Companies in various industries are testing human-machine hybrid teams.

Advantages of Human-Machine Collaboration:

• Significant improvement in productivity
• Establish trust through smart contracts
• Social norms are constantly evolving

The boundary between "employees" and "software" will begin to blur in 2025.

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7. 99% of AI Agents will perish, only the useful will survive.

There will be a "Darwinian" elimination among AI agents. Only those agents that can generate enough value to cover their operating costs will survive.

Survival Game Example:

• Carbon Credit AI: Identify energy network efficiency and trade tokenized carbon credits
• DEX Arbitrage Bot: Generate stable income using price differences
• Social Media AI KOL: Difficult to maintain due to lack of sustainable income sources

This elimination mechanism is beneficial for industry development, forcing developers to prioritize practical use cases over gimmicks.

8. Synthetic data will surpass human data

Synthetic data provides a scalable, ethical, and privacy-friendly alternative to human data.

Advantages of synthetic data:

• Can be generated infinitely
• Protect privacy
• Customizable according to needs

The next wave of decentralized AI may revolve around "micro-laboratories" that can create highly specialized synthetic datasets tailored for specific use cases.

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9. Decentralized training will become more practical

In 2024, pioneers like Prime Intellect and Nous Research broke through the boundaries of decentralized training. EXO Labs recently made progress through SPARTA, significantly reducing the communication demands between GPUs.

With technological advancements, micro models are becoming more practical and efficient. High-performance models are expected to emerge that can run on edge devices and even smartphones.

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10. The market capitalization of ten new encryption AI protocols will reach 1 billion USD.

The encryption AI market is large and still underdeveloped, and will not be monopolized by a few participants. It is expected that at least ten new encryption AI protocols ) that have not yet issued tokens will have a circulating market value exceeding 1 billion dollars.

The new protocol may replace existing projects in the following ways:

• Innovative incentive measures
• Technical breakthrough
• User Experience Improvement

This field is still in its early stages, with a growing talent pool laying the foundation for a project explosion. While many projects may disappear, a few may possess transformative power.