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Latest news on Artificial Intelligence (AI) in the cryptocurrency market

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AI Token Market Experiences Significant Decline

According to Odaily, data from CoinGecko indicates that the total market capitalization of AI-related tokens has decreased to $9.594 billion, marking an 8.7% drop over the past 24 hours. Among the tokens, FET experienced a 6.3% decline, with its market value now at $2.542 billion. AI16Z saw a 1.2% decrease, bringing its market capitalization to $695 million. Meanwhile, VIRTUAL's market value fell by 0.1%, currently standing at $1.26 billion.
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AI Advancements Highlight Competition Among Tech Giants

According to Odaily, ai16z co-founder Shaw recently shared insights on X, emphasizing that more powerful models are always beneficial for AI agents. Over the years, AI labs have consistently outperformed each other in benchmarks and capabilities, with Google, OpenAI, and Claude taking turns in the lead. Currently, DeepSeek is at the forefront. The trend shows that the world's largest and most well-funded companies are competing in a technology that is ultimately becoming free, open-source, and operable on home computers without cost. The consistent winners in this race have been hardware and consumer products. Nvidia remains a constant victor, with each model optimized for its hardware. Apple also benefits, having invested in a unified memory architecture that allows high VRAM machines to run the latest models, albeit slowly. Products continue to gain from the latest models, with examples like Cursor and Perplexity improving significantly every few months. As AI integrates into nearly all products, they all benefit from cheaper and faster AI models. AI agents represent a new application paradigm, with the core argument being that applications need to migrate to social media platforms where users are present. Agents can exist entirely on social media without requiring users to leave, benefiting from network effects with each user interaction. Integrating a new model into an agent framework typically requires only a few lines of code, as most model providers follow the same API conventions established by OpenAI, allowing this integration to be completed in minutes. This enables any agent application to access the latest models immediately, becoming smarter with each new state-of-the-art model. This week marks a significant victory for everyone involved, including agents, humans, and AI model teams, who are now motivated to work harder and improve. Shaw expressed confidence in their position, stating that they are building the next version of Eliza, which will only get better. Thousands of teams are building on their technology, with over 500 contributors to the core repository, and this number is expected to grow as they continue to develop. They are creating a template for ambitious founders to crowdfund their public product projects, with more content to be launched in the coming weeks and months to solidify this strategy.
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AI Agents Revolutionize DeFi With Real-Time Data

According to Cointelegraph, artificial intelligence (AI) agents are becoming integral to decentralized finance (DeFi), automating financial systems and trading strategies. However, concerns about their safety and reliability persist as their adoption increases. Mike Cahill, CEO of Douro Labs and contributor to the Pyth Network, emphasized the importance of real-time, high-fidelity data for AI agents to make accurate decisions. He noted that errors or data manipulation could lead to unintended consequences, which can be mitigated by providing ultra-low-latency, first-party price updates.AI agents rely on precise and timely data to function effectively in fast-paced markets, ideally sourced directly from first-party providers like market makers or exchanges. These systems aggregate data from multiple sources, reducing the risk of manipulation or inaccuracies, with updates occurring as quickly as one millisecond. This ensures that AI agents can respond instantly to market changes. Cahill highlighted that Pyth ensures agents operate on the most accurate market data available, eliminating risks associated with outdated or manipulated information. AI agents thrive on speed, precision, and automation.One of the significant challenges for AI agents is operating safely within volatile market conditions, which decentralized systems aim to address. For instance, Oracle Integrity Staking (OIS) requires data publishers to stake capital, aligning their financial incentives with the accuracy of their contributions. This means they risk losing their stakes if they provide faulty or manipulated data. Cahill explained that Pyth’s OIS creates an economic security layer that aligns with first-party price sourcing and weighted aggregation to develop resilient, high-frequency pricing that reflects true market conditions. AI agents can also integrate programmable safeguards, such as confidence intervals and predefined slippage thresholds, preventing them from executing trades under volatile or unreliable conditions.Cahill envisions a future where fully autonomous financial systems operate more efficiently than any human-run market ever could, anticipating the emergence of artificial general intelligence (AGI) agents within the next one to three years. He stated that real-time data empowers AI agents to unlock a new era of high-frequency, algorithmic trading in DeFi, where institutional DeFi surpasses traditional finance by offering a market that is not only decentralized but also faster, more efficient, and truly autonomous. Recent developments in the crypto industry, such as Fetch.ai's launch of a $10 million accelerator for AI agent startups and the publication of a white paper by the developer behind ai16z on Web3-native AI agents, underscore the growing push for AI agent technology.
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