Can AI tokens muscle in on memecoins’ turf? If 2024 was any clue, they’re not just showing up — they’re gunning for the crown.
The current market cap of such AI tokens is about $14 billion, far off from the $117 billion market cap of memecoins. AI tokens are still the underdog. But their momentum says otherwise.
They recorded the highest average price gains among several types of AI tokens – a staggering average price gain of nearly 3,000%, according to CoinGecko.
On the other hand, memecoins — crypto’s wild child — stood second with more than 2,000% in returns during the same period. Real World Asset tokens were 3rd (800%).
Read more: Altcoins take center stage as BTC catches its breath
Haseeb Qureshi, managing partner at Dragonfly VC says, “I’m either going to look like a prophet or an idiot” and this is going to “piss off a lot of people with bags” but “memecoins will continue to lose market share to “AI agent” coins.
He was quick to point out, however, as we have too, that these aren’t really AI agents. “These are chatbots with memecoins attached; they are barely agentic at all besides posting on Twitter.”
Qureshi’s firm knows its crypto. Dragonfly has invested in more than 100 crypto entities, closed its third fund, a $650 million vehicle in 2022, and is currently seeking $500 million for a fourth.
Read more: Crypto in 2024: The good, the bad, and the downright weird
Hold your horses
There are skeptics though.
Kinji Steimetz, an analyst at crypto intelligence firm Messari, says it clearly: AI tokens lack staying power. Speculation drives launches, but once the hype fades, people realize these are still just toys, he says.
Even Qureshi acknowledges the risks. These bots, he warns, can be jailbroken to steal resources.
He expects AI agents to dominate headlines in 2025, predicting that they will slash the cost of software and as a result spark an on-chain boom for AI tokens.
AI tokens dazzled in 2024, proving they’re more than just a flash in the pan. But whether they can dethrone memecoins for good or fizzle out as a passing trend is anyone’s guess.
Edited by Amitoj Singh and Ankush Chibber. If you have any tips, ideas or feedback, please get in touch: talk-to-us@moniify.com
