AI agents: From 100x returns to market correction – What’s next?

AI agents delivered 100x-1000x returns, but market correction followed the hype.
The next phase of these agents will focus on real-world applications in DeFi and memecoin trading.

In late 2023, AI agents captured the crypto world’s imagination, delivering mind-blowing returns for early investors.

Tokens like Virtuals Protocol [VIRTUAL] and aixbt [AIXBT] saw gains of 100x and 1000x, respectively, driving a frenzy of speculation and media buzz.

However, as is often the case in the volatile crypto space, the hype eventually gave way to a market correction.

Now, the big question remains: is the AI agent narrative over, or is this just the beginning of a new, more sustainable phase?

As the dust settles, the next evolution of AI agents is already unfolding, and the potential for innovation and growth is far from over.

The rise of AI agents

The AI agent narrative took the crypto market by storm in late 2023, delivering astronomical returns across multiple projects.

Source: X

The peak came around late December, when AI agent coins collectively crossed $5 billion in market cap, with top tokens experiencing exponential growth.

However, as seen in the chart, the momentum cooled off sharply in January 2024, leading to a decline back to $2 billion-$3 billion range.

While some projects continue to show resilience, the overall market structure suggests a crucial inflection point — will AI agents fade to dust, or is another rally imminent?