March 7, 2025
DeFAI
Once seen as the future of Web3, AI agents’ sharp decline has led some to believe the sector was a speculative bubble. However, the ongoing market challenges provide an opportunity to focus on projects with solid foundations.
Source: X (@ionet)
Additionally, both developers and investors are particularly hopeful about DeFi-powered AI agents (DeFAI), which could rise above the noise as the market settles. AI advocates, like 0xJeff, also remain bullish on DeFi integration.
Still Plenty Of Potential
While the AI agent sector has certainly struggled, the current downturn could ultimately lead to the emergence of more viable projects. The estimated $100B TVL in DeFi presents an opportunity to simplify complex financial products, making them more accessible to users.
AI’s role in DeFi was also a major topic at ETHDenver, showing that interest in AI within crypto remains strong despite the market’s cooling.
