2024 Cryptocurrency AI Track Review and Outlook

In 2024, the encryption AI field has achieved unprecedented growth. At the beginning of the year, there were only a few projects, but now it has become an independent track in the encryption market that cannot be ignored.

According to the latest data, on December 7, the total market capitalization of the encryption AI sector surpassed $70 billion, reaching a peak market share of 2% in the entire encryption market, with an annual growth rate of up to 400%. At the same time, the number of encryption AI projects has also seen explosive growth, currently exceeding 600, covering various categories such as decentralized AI infrastructure and AI Dapps.

Looking back at 2024, the narrative of encryption AI has undergone several significant changes. At the beginning of the year, a video generation project launched by an AI company ignited a hype around encryption AI infrastructure. Subsequently, the annual conference of a chip company brought decentralized GPUs into the market spotlight. Mid-year, the encryption AI sector experienced an investment boom, with numerous projects receiving funding support, accelerating technological research and application processes. By the end of the year, the outbreak of AI Agent Meme brought the narrative of encryption AI to a new climax.

Encryption AI asset total market value exceeds 70 billion USD

According to a certain data platform, the number of Tokens included in the encryption artificial intelligence sector has reached 355, with a total asset market value exceeding 70 billion USD on December 7, peaking at 70.42 billion USD. As of December 23, affected by the market correction, the total market value of the encryption AI sector has fallen back to 47 billion USD, with a 24-hour trading volume still reaching 5 billion USD.

At the beginning of the year, the total market value of the encryption AI sector was only 17 billion dollars. In less than a year, it achieved a 400% increase, demonstrating the enormous potential of this field.

The founder of a capital company pointed out that although the current encryption AI sector accounts for only about 1% of the total market value of the encryption market, with the evolution of market cycles and the strong momentum of AI infrastructure and AI Agents, it is expected that the market value of this sector is likely to achieve a tenfold increase.

It is worth noting that on December 23, the total market capitalization of the entire encryption market reached $3.4 trillion, with the market share of encryption AI assets approaching 1.4%, further proving its growth potential in the future.

The year 2024 is a key year for encryption AI, transitioning from its emergence to a full-scale explosion. At the beginning of the year, the number of projects was limited, mainly represented by decentralized GPU projects, AI infrastructure, and identity authentication projects. A year later, the encryption AI field can be divided into multiple sub-tracks, covering decentralized GPU, AI data platforms, AI infrastructure, and AI Agents, with the number of projects reaching hundreds.

2024 encryption AI Catalyst

From the trend of the total market value of encryption AI assets, the growth in 2024 shows two significant peaks: during the period of February to March and after October.

The growth during the period from February to March was mainly driven by two landmark events in the AI field. In February, an AI company released the "Text-to-Video" large model, which propelled the prices of related encryption projects and spurred growth in the entire crypto AI sector. Subsequently, several AI-related projects began to attract attention, further igniting market investment enthusiasm. In March, the annual AI conference of a chip company once again sparked widespread interest, leading to the emergence of decentralized GPU and other conceptual projects.

The growth after October is attributed to the explosion of AI Agent Memes. The emergence of a certain AI Agent project token triggered a wave of AI Agent Meme project token launches. This has rapidly established AI Agents as an independent niche within the encryption AI field, covering AI Agent Meme coins, issuance platforms, and underlying infrastructure, among others. As of December 23, the total market capitalization of AI Agent tokens has reached 9.8 billion USD, accounting for about 20% of the total market capitalization of the entire encryption AI sector.

In 2024, the encryption AI market is experiencing an investment boom, with major institutions rushing in. Several top venture capital firms have actively laid out "Crypto+AI" projects. According to a report from a data company, in the third quarter of 2024, over $213 million in encryption venture capital was injected into AI projects, a month-on-month growth of 250% and a year-on-year increase of 340%.

"Crypto for AI" Market Prospects

Currently, encryption AI products are mainly divided into two forms: "AI for Crypto" and "Crypto for AI."

"AI for Crypto" focuses on applying AI technology to encryption products, such as AI code optimization and security audits, on-chain yield strategies, and integrating AI chatbots.

"Crypto for AI" leverages encryption technology to empower the AI industry, addressing issues such as data privacy and security, assetization of models, and the aggregation of computing resources.

Overall, "Crypto for AI" shows broader prospects in market applications, and more and more professionals in the AI industry are beginning to seek solutions to industry challenges through encryption technology.

Encryption AI Ecosystem

Based on the three elements of AI: "data, computing power, and algorithms", the encryption AI ecosystem covers the following aspects:

Data level: includes data collection, storage, and processing. Some projects incentivize users to share data through tokens, establishing data markets or data pools. Decentralized data labeling platforms provide developers with high-quality training datasets. Certain projects offer secure data storage solutions.

Computing power aspect: A decentralized GPU computing network has emerged, allowing anyone to contribute GPU computing power and receive rewards. Some projects even tokenize physical GPUs to promote the decentralization and liquidity of computing power.

Algorithm model layer: The decentralized AI algorithm network is essentially an AI algorithm service market that connects AI models with different expertise. Some projects gather excellent models through subnetworks or competitions, incentivizing model contributors through tokenization.

2025 Outlook for the Encryption AI Track

AI Agent-related products have become the new favorites in the market, with multiple institutions predicting explosive growth in 2025. The continued rise in the heat of the external AI field further drives the prosperity of the AI market.

On the narrative level, a well-known AI company plans to launch a new AI Agent product in January 2025, which is expected to reignite the AI market. A certain chip company's annual AI summit will also be held in March, and it is equally anticipated.

At the policy level, the new U.S. government has appointed individuals with dual investment experience in encryption and AI to oversee related affairs, which is expected to promote the development of the integration of encryption and AI.