Outlook for the Encryption AI Sector in 2025: Market Capitalization Expected to Reach $150 Billion, 99% of AI Agents Will Disappear

A researcher has made 10 predictions regarding the development of the encryption AI industry by 2025, and here are the main points:

1. The total market capitalization of encryption AI tokens reached 150 billion USD.

Currently, the market capitalization of encryption AI tokens only accounts for 2.9% of the market capitalization of altcoins, but this proportion is expected to increase significantly. AI encompasses multiple fields from smart contract platforms to memes, DePIN, as well as agency platforms, data networks, and smart coordination layers, and its market position is expected to be on par with DeFi and memes.

Reasons to be optimistic about encryption AI include:

• The integration of the two dominant technologies: encryption and AI
• Possible events triggering the AI boom
• The enthusiastic participation of retail investors

2. Bittensor is ushering in a revival

As a well-established decentralized AI infrastructure project, Bittensor(TAO) has recently made significant progress:

• Subnet registration fee reduced
• Inference speed and other metrics surpass Web2 competitors
• Introduce EVM compatibility

The launch of dTAO may become a turning point, allowing each subnet to have independent tokens and determining token allocation based on market performance.

The key to the revival of Bittensor is:

• Market-based token allocation mechanism
• Investors can invest in specific subnets.
• EVM integration attracts more developers to join

3. Calculate the market to become the next "L1 market"

The demand for computing power is growing exponentially, and decentralized computing layers can provide verifiable and efficient raw computing power. Startups like Spheron, Gensyn, Atoma, and Kuzco are quietly building the infrastructure.

Compared to the L1 market:

• Similar competition will unfold among the calculation protocols.
• Expected to attract some traditional cloud computing customers

4. AI agents will dominate blockchain transactions

By the end of 2025, 90% of on-chain transactions may be executed by AI agents, used to rebalance liquidity pools, allocate rewards, or execute small payments based on real-time data feedback.

The reasons for this change include:

• Reduce human errors
• Achieve more efficient micro payments
• Simplify user operations

5. The Rise of AI Agent Clusters

AI agent clusters will enable seamless collaboration of micro AI agents. These cluster networks are expected to produce intelligence that is more powerful than that of a single AI.

To achieve the vigorous development of the cluster, it is necessary to:

• General Communication Standard
• Transparent on-chain rule management

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

The future work teams will include AI agents with autonomy, responsibilities, and even compensation. The advantages of this collaborative model include:

• Significantly improve productivity
• Establishing trust through smart contracts
• The continuous evolution of social norms

99% of AI agents will disappear, only the useful ones can survive.

AI agents will undergo a "Darwinian" elimination process. Only those agents that can generate enough value to cover their operating costs will survive. This mechanism is conducive to driving industry innovation, prioritizing practicality over gimmicks.

8. Synthetic data exceeds human data

Synthetic data will become a scalable, ethical, and privacy-friendly alternative to human data. Its advantages include:

• Unlimited Scale
• Protect privacy
• Customizability

9. Decentralized training becomes more practical.

Decentralized training technology continues to break through, such as EXO Labs' SPARTA which significantly reduces communication between GPUs. In the future, high-performance models may emerge that can run on edge devices or even smartphones.

10. Ten new encryption AI protocols have a market capitalization of 1 billion USD.

It is expected that by the end of 2025, at least ten new encryption AI protocols with tokens yet to be launched will reach a circulating market capitalization of $1 billion. New entrants may challenge existing leaders through innovative incentive mechanisms, technological breakthroughs, and improvements in user experience.