Do you remember the hype around Layer 1 and Layer 2 in 2022-2023?
At the time, the best investments were to buy tokens of top decentralized exchanges (DEXs), lending protocols, EVM-compatible networks, LST, yield optimization protocols, etc. Everyone was crazy about mining, airdrops, or investing TVL in projects like Blast to accumulate points.
It was a bit chaotic back then, but some investments worked (at least at the beginning of some months). Now, the market has regained a similar vitality, but this time the rules are completely different.
Now, the AI Agent ecosystem is changing all our perceptions of the market, and the structure is completely different from what we have seen before.
1. No VC-led
Recalling the era of Layer 1 and Layer 2, token distribution almost always follows a fixed pattern:
The team takes 15-30%; investors and KOLs take 10-30%; the rest is used for airdrops or other incentives.
But the new cycle is different now. In the AI Agent ecosystem, tokens are generally 100% owned by the community. After the team issues the tokens, they may take 5% as subsequent rewards, and the rest is completely left to the market to decide.
What does this mean?
Everyone has an equal opportunity to buy, without concerns about VC unlocking or insider trading. Anyone who wants to enter the market will face the same market risks as other investors.
You may ask, what about KOL’s over-the-counter transactions?
Some programs do offer discounted OTC deals, but they will usually:
There are strict size restrictions; it is only available to DAOs or KOLs who actively support the ecosystem.
This is no longer the “VCs set the game, and retail investors take over” game. It is now a fairer and simpler system, where the power is truly in the hands of the community.
2. No endless forks
At least not like DeFi, where almost every project, from Uniswap to Liquity, has a bunch of unoriginal forks, everyone is copying and pasting, with almost no innovation.
The new cycle is completely different now, and everything revolves around innovation. Developers are no longer just copying existing projects, but are constantly launching new agents and application scenarios at a speed that is difficult to keep up with.
Why? Because AI is developing so fast:
You don’t have to wait months for a review process; most Agents can be launched in just weeks or even days; this field is full of energy, experimentation, and creativity.
There are exciting new things emerging every week. As AI technology advances, AI Agents in Web3 are also evolving.
3. New Customer Acquisition Funnel
In the past DeFi market, users often had to find the project’s website first, spend time understanding its products, and then decide whether to interact with it.
But AI Agents are completely different. They can display products directly to users.
Take aixbt (@aixbt_agent) for example, which provides various alpha insights in real time on X.
Users can immediately see its value and become interested; then learn more; and ultimately, they may decide to purchase tokens to unlock more features.
This "engage first, trade later" customer acquisition method is more efficient than the traditional method. With the continuous development of on-chain transaction AI Agent and DeFi AI Agent, this model is expected to become mainstream by 2025.
4. Highly integrated ecosystem
In the new cycle, the ecosystem will be more tightly integrated, and there will no longer be thousands of projects scattered like Layer 1/Layer 2 and DApp.
For example, Virtuals (Base), ai16z (Solana), daos.world (Base), daos.fun (Solana)... What is special about these projects is that developers do not join because of subsidies or incentives, but because they naturally attract them.
A fair token economic model, a vibrant community, and the opportunity to experiment and innovate in exciting areas... this is the result of a combination of fair issuance and continuous innovation. Builders, investors, and communities will jointly drive the growth of the ecosystem.
So, how to plan in the new cycle?
The current market is like the early stages of Layer 1, but it is developing faster. As early as 2020-2021, many Layer 1 projects reached a peak valuation of $100 billion. Now, the AI track also has such potential.
If you want to deploy efficiently, pay attention to these new "Agent Layer 1" projects:
VIRTUAL
AI16Z
BRAIN
GRIFFAIN
BULLY
ARC
Don’t just chase the hot spots of the moment, look for undervalued projects that are not affected by external events, and teams that interact quickly, have great narratives, and know how to build consensus.
Welcome to the New World
The AI Agent Ecosystem is more than just a new Layer 1. It represents an entirely new market structure — faster, simpler, and more community-oriented than anything we’ve seen before.
We are entering a cycle that will likely redefine how Web3 innovation works, and a $10 billion valuation is just the starting point.