30s Summary

AI agents will revolutionize the Web3 universe by 2025, according to industry experts. Despite challenges like technology complications, legal hurdles, and centralization issues, these autonomous bots are participating in on-chain activities and have already generated over $10 billion in market cap. Practical applications are expected in cryptocurrency staking and on-chain investments, but improvements are required in training data and user privacy. Escalating regulations could also impact decentralized AIs. Thus, investors must recognize this technological advancement and prepare accordingly.

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AI agents are going to change the game in the world of Web3 by 2025. This is what some bigwigs in the industry have been telling Cointelegraph. These tech-savvy robots are not only developing web-based apps and releasing virtual tokens, but they’re also mingling with humans all on their own.

According to J.D. Seraphine, a developer at Raiinmaker, these AI agents will be super important in decentralized communities by 2025. However, it won’t be a smooth sail. They’ll be up against things like tech nitty-gritties, law-related speed bumps and, of course, centralization. Michael Casey, co-founder of the Decentralized AI Society, warned about the downsides of centralized systems, saying that they could lead us to some pretty sticky situations, especially if AI is involved.

On the brighter side, these AI agents are really cashing in on onchain activities. Weekly earnings have reached millions of dollars. As per a report by VanEck, we can expect around a million AI agents to be buzzing around blockchain networks by the end of 2025.

All of this means big bucks for these AI agents. They managed to generate over $10 billion in market cap, most of it achieved in the last quarter of 2024. Big projects included ai16z, which uses AI to steer onchain investments, and Virtuals, a platform to launch AI agents on Coinbase’s Base network.

As for the practical applications of these AIs, cryptocurrency staking is a good place to start, says Matt Hougan of Bitwise. Staking is a transaction in which you secure a blockchain network by locking up tokens with validators and get a slice of the transaction fees in return.

One great example of this is ai16z’s agent, Eliza, who manages an onchain liquidity pool all by herself and has brought in more than 60% in annualized returns. Still, there is room for improvement. AIs like Eliza need better training data, but without breaching user privacy, says Seraphine. On the other hand, Casey warns of looming regulations, especially from big names like OpenAI, which could affect decentralized AIs.

For investors, the key is to acknowledge the importance of this tech development and prepare for it, Hougan advises. So, even if we don’t know exactly how things will pan out, it’s still important to stay in the loop.