Author: 0xJeff, Steak Studio; Translation: Golden Finance xiaozou
Last year, when there were so many L1/L2 public chains that we couldn’t count them with our hands, liquidity fragmentation became a major challenge. Then, Bitcoin L2 entered the market, causing the number of L2s to surge.
This has resulted in fragmented liquidity, attention, and experiences across countless ecosystems. Many L2s and dApps in these ecosystems have struggled to gain any meaningful traction. Capital has only flowed into a handful of top ecosystems — those with outstanding communities, great products, high-quality teams, and enough funding to attract builders.
The same challenge is now beginning to emerge in the AI agent space. It is still early days, but the sheer number of individual agents, tokens, and new agent tokens makes it difficult to distinguish between them.
The industry is facing a growing problem of agent fragmentation. Liquidity and attention are too scattered and thin.
1. Two common tracks of AI agents
Most AI agents follow two tracks:
(1) From Agent to Framework
Some agencies demonstrate their value by continually attracting users and having them interact with the product in real time on platforms such as Crypto Twitter (or other channels). Once these agencies reach product-market fit (PMF) and gain enough attention, other teams will usually want to copy what they have built.
What’s the logical next step? Open source the proxy. That way, the proxy evolves into a framework — making it easier for others to experiment, integrate, and build on top of it. This move could break the valuation ceiling that limits the proxy and position it as more akin to an L1 blockchain.
We saw this trend with the following agents:
Cerebro
Idols
AVA
Freysa
King
This approach allows these agents to scale by reducing barriers for others to join their ecosystem.
(2) Continue to improve products as an independent agent
Not all agents will find PMF right away. Some must evolve over time until the right use case is found. Even then, some teams would rather keep their technology to themselves than open it up to others.
For those agents that have discovered PMF and are performing well, there is no need to transition to a framework - they can still continue to be independent agents.
An example of this method is as follows:
Aixbt
Griffain
So, what should we do?
For builders: Focus on understanding the gaps in the market and building products that provide real value to users. Remember, agents should act as a conduit to bring users into the ecosystem. In such a saturated market, it will only become more and more difficult to stand out.
For investors: Focus on the leaders or top projects in each category. Doubling down on dips may be the best way to consolidate focus in this fragmented space.
2. Current categories and narratives and projects worth noting
(1) Alpha-centered KOL agent
These agents dominate in outputting alpha (insights, data synthesis, and analysis). Aixbt leads in mind share. While this is not a winner-takes-all market, the leaders will receive a disproportionate amount of attention.
Tokens worth noting include: AIXBT, REI, TRISIG, TRUST, AGENCY, KWANT
（2）InvestmentDAO
These DAOs focus on strategic investing. The winners in this space are usually those DAOs that can effectively execute strategies and provide strong PnL.
Here is an example:
VADER、AIXCB、AIMONICA、SEKOIA、WAI、AROK
Other platforms in this field include Virtuals, ai16z, daos.world and daos.fun.
(3) Agent virtual world/game x AI
This is a young field with huge potential. Realis pioneered the trend, but Hyperfy is now the leader in world building infrastructure. Smol and Arc Agent are exploring AI-based games and gamification mechanics with reinforcement learning.
The main tokens are as follows:
HYPER、REALIS、SMOL、NRN
(4) DeFAI/Abstraction Layer
It’s a highly competitive space with multiple players vying for dominance. Wayfinder’s token offering is expected to be a game-changer.
The tokens to watch are as follows:
GRIFFAIN, ANON, GRIFT, NEUR
(5) Autonomous trading agent
The narrative is still in its early stages but has huge potential. Multiple players have emerged in the space, with each agency striving to generate huge returns.
The tokens to watch are as follows:
ASYM、PPCOIN、GEKKO、TONY
(6) Framework
Popular framework tokens enhance agents by providing open source solutions. AI16Z/Eliza is the largest open source framework, but there are other models.
The main tokens are as follows:
AI16Z / ELIZA, GAME (Virtuals), ARC (Rig)
(7) Music
AI agents are entering the music space by releasing albums or supporting music creation. Zerebro is leading the way with an excellent album, and now more and more agents are entering this market segment by cross-field collaborations with world-class DJs.
The main tokens are:
CEREBRO, MUSIC, BEATS
(8) 3D Model
Ava is undoubtedly a leader in 3D modeling. Holoworld AI has been working with various teams to develop and deploy 3D models across different frameworks and ecosystems.
AVA is a coin that needs attention.
（9）AIDOL
This trend started with Luna becoming an AI idol on TikTok and Twitter. While the initial hype has faded, this niche has laid the foundation for agents to provide more practical services. Luna is still the most relevant AIDOL, she now has more personality and can do more things.
The main tokens are as follows:
LUNA、ELIZA、MOE
(10) AI Meme Bank
These meme coins are either issued by AI agents or are associated with AI.
The mainstream tokens are:
GOAT、FARTCOIN、ACT
(11) Video/Cinematography
This is a nascent industry, and Kween is leading the way in producing high-quality movies, though it’s unclear if they are agent-driven. Sandy is launching the first AI video agent framework, and its full potential has yet to be realized.
Tokens worth noting are:
QUEEN、SANDY
(12) Data
In the field of artificial intelligence, data is the digital golden key to agent development and performance. Cookie is at the forefront of providing data to both human and AI agents.
The main tokens are:
COOKIE、RENTAL
(13) AI App Store
This category focuses on useful AI application ecosystems, including GenAI tools, games, and productivity enhancement tools. Alchemist is currently the top ecosystem, while Myshell focuses on image generation and waifu simulator games, although its token has not yet been released.
The main token in this field is ALCH.
(14) NSFW Proxy
This is an emerging market segment where agents act as spicy influencers, engaging users 24/7. Lush, Nectar, and Oh are the biggest competitors, though there is only one token, Lush.
Tokens to watch: LUSH
(15) TEE/DeAI Infrastructure
This narrative enables fully autonomous agents to resist human interference, such as hacking or rug pulling.
The main tokens are:
FAI、PHALA、SPORE
(16) Development-focused tools
Key tools for AI security, code analysis, and utility that are critical to the growth of this industry. Soleng is my personal favorite because it helps non-technical people on Crypto Twitter analyze code/github directories.
Tokens to watch include:
SOLENG、H4CK、CERTAI、JAIL
(17) Robotics/Embedded AI
This is an exciting and developing field. OpenAI’s work on embedded AI is likely to attract more attention this year.
Main Token: SAM
(18) Other projects
There are many more categories I haven’t covered. Proxy fragmentation is out of control. My personal view on investing is to focus on the narratives that attract the most attention and predict the future narratives that will also attract attention.
The main narratives I am watching that will continue to gain traction are:
DeFAI
Autonomous Trading Agent
InvestmentDAO
Agent Virtual World
There are a few other narratives I’m bullish on as I expect them to gain more traction as we head into Q1/Q2 of the year, and they are:
NSFW Proxy
TEE and other DeAI infrastructure (opML, zkML, POSP, etc.)
robot
Development-focused tools
3. Conclusion
The issue of agency fragmentation highlights the complexity and opportunities in this rapidly evolving space. Rather than jumping on all the trends, builders and investors should focus on areas with potential for consolidation and long-term growth.
For builders, the focus should be on creating scalable, differentiated products that meet clear user needs. For investors, backing projects with strong followings and positioned in high-potential narratives will be key to addressing the challenge of fragmentation.
The next wave of innovation will come from projects that simplify the chaos and create ecosystems that unite liquidity, attention, and value.
