AI Agent Tokens Poised To Lead Crypto Market In 2025, But “Sudden Reversal” Looms By 2026 – Dragonfly Capital

The information provided on Inside Bitcoins is for educational and informational purposes only and should not be considered financial, investment, or trading advice. Cryptocurrency markets are highly volatile, and investing in digital assets carries significant risk. No profits are guaranteed, and you may lose some or all of your investment. Always invest responsibly and only with funds you can afford to lose.

Join Our Telegram channel to stay up to date on breaking news coverage

AI agent tokens are expected to lead the crypto market in 2025 and even outperform meme coins, but will face a “sudden reversal” in popularity by 2026, Dragonfly Capital said.

“Memecoins will continue to lose market share to ‘AI agent” coins,”’ said managing partner Haseeb Qureshi in a Jan. 1 post on X. “I consider this a migration from financial nihilism to financial over-optimism.”

AI Agents “Will Die Off”

But Qureshi said that the AI agent trend will not last forever. After the initial hype in 2025, the focus will shift as more advanced technology becomes available.

“This is not the long-term disruption to watch out for from AI,” Qureshi said. ”These things are not really agents. These are chatbots with memecoins attached; they are barely agentic at all besides posting on Twitter.”

Still, AI agent coins soared more than 15% in the past 24 hours, outperforming meme coins, which climbed 7.5%, according to CoinMarketCap.

The top-performing AI agent coin was Virtu by Virtuals, which soared almost 113% in the past 24 hours on trading volume of $1.29 million.

AI tokens and agents are still vulnerable to bad actors, Qureshi said.

“Current agents can easily be manipulated into saying crazy things that damage their brands, or can be jailbroken to steal all of their resources,” Qureshi said.

A “Sudden Reversal” in the Market

As AI technology becomes more common and overused, people will lose interest in AI agents, Qureshi said.

“Crypto takes a while to get bored of the shiny thing,” he said.

He also said that chatbots will become more widespread and that sentiment will shift, leading to a more cautious perception.

Related Articles

Best Wallet - Diversify Your Crypto Portfolio

Our Rating

Best Wallet
  • Easy to Use, Feature-Driven Crypto Wallet
  • Get Early Access to Upcoming Token ICOs
  • Multi-Chain, Multi-Wallet, Non-Custodial
  • Now On App Store, Google Play
  • Stake To Earn Native Token $BEST
  • 250,000+ Monthly Active Users
Best Wallet

Join Our Telegram channel to stay up to date on breaking news coverage

Read next