The encryption AI field will shine brightly in 2024, with promising prospects for 2025.

In 2024, the encryption AI field experienced unprecedented explosive growth. In just one year, this field has evolved from only a few projects to an independent track in the encryption market that cannot be ignored.

According to data, on December 7th, the total market capitalization of the encryption AI sector exceeded $70 billion, reaching a maximum share of 2% in the entire encryption market, with an annual growth rate of up to 400%. At the same time, the number of encryption AI projects has also shown explosive growth, currently exceeding 600, covering various categories of products such as decentralized AI infrastructure and AI Dapps.

Looking back at 2024, the narrative of encryption AI underwent several significant changes. At the beginning of the year, major breakthroughs in the field of artificial intelligence ignited a wave of speculation surrounding encryption AI infrastructure. Subsequently, the annual conference of a certain technology company's AI brought decentralized GPUs to the forefront of market attention. By mid-year, the encryption AI sector experienced an investment boom, with numerous encryption projects receiving funding support, accelerating the research and application of technology. By the end of the year, the explosion of AI Agent Meme pushed the narrative of encryption AI to a new climax.

The total market value of encryption AI assets has exceeded 70 billion US dollars this year.

According to the latest data, the number of Tokens included in the encryption artificial intelligence sector has reached 355, with a total market capitalization surpassing $70 billion on December 7, peaking at $70.42 billion. As of December 23, the total market capitalization of the encryption AI sector is $47 billion, with a 24-hour trading volume reaching $5 billion.

Looking back at the beginning of the year, the total market value of assets in the encryption AI sector was only $17 billion. In less than a year, the total market value of assets in this sector has increased by over 400%, once again showcasing the vigorous development and enormous potential of the encryption AI field.

A co-founder of a capital company expressed his views on December 12, pointing out that although the current encryption AI sector accounts for only about 1% of the total market value of the encryption market, with the ongoing evolution of market cycles and the strong momentum of AI infrastructure and AI Agents, he predicts that the market value of this sector is expected to achieve a tenfold increase.

It is worth mentioning that on December 23, the total market capitalization of the entire encryption market reached $3.4 trillion, while the market capitalization of encryption AI assets accounted for nearly 1.4% of the entire market at that time (with a peak market share exceeding 2%), further proving its future market growth potential.

2024 is a key turning point year for the encryption AI field, transitioning from emerging prominence to full-scale explosion. At the beginning of the year, the encryption AI track was still in its infancy, with only a handful of projects. However, in less than a year, the encryption AI field can now be divided into multiple sub-tracks, covering decentralized GPUs, AI data platforms, AI infrastructure, and AI Agents, among several other branches, with project numbers reaching into the hundreds.

According to data platforms, the number of encryption projects that include AI entries has exceeded 600, and this number is still increasing.

2024 Encryption AI Catalyst

From the data trend of the total market value of encryption AI assets, the growth in 2024 shows two significant peaks: the first peak occurs between February and March, while the second happens after October, ushering in a stronger wave of growth.

The growth of the encryption AI field from February to March was primarily driven by the strong stimulation brought about by two landmark events in the AI sector. In February, a certain AI company shocked the world with the release of its "Text-to-Video" large model, which sparked a disruptive transformation in the AI field. At the same time, this event also greatly boosted the token price of a certain encryption project led by the company's founder, further driving strong growth in the entire encryption AI asset sector.

Immediately following this, the grand annual AI conference of a certain tech company in March attracted widespread global attention again, driving its market value to soar and triggering a speculation boom in GPU chips. This series of events led to the emergence of decentralized GPU and other conceptual projects springing up like mushrooms after rain, bringing more choices and opportunities to the market.

In October, the growth in the encryption AI field was primarily attributed to the explosion of AI Agent Meme. The emergence of AI Agent projects triggered a wave of speculation in AI Agent Meme token issuance, leading to the mass issuance of nearly a hundred AI Agent Meme tokens. This trend has allowed AI Agent to rapidly rise and become an independent segment within the encryption AI field, with products including AI Agent Meme tokens, AI Agent issuance platforms, and underlying AI Agent infrastructure. As of December 23, the total market capitalization of tokens in the AI Agent segment has reached 9.8 billion USD, accounting for about 20% of the total market capitalization of all encryption AI projects, and the speculation heat is still ongoing.

In 2024, the encryption AI market has ushered in an unprecedented investment boom, with major investment institutions rushing in and investment amounts soaring sharply. Several top venture capital firms have actively laid out plans for "Crypto+AI" projects. One institution expressed its strong optimism about the combination of Crypto and AI at the beginning of the year and invested in multiple related projects. Another institution raised a new fund of $6 billion, focusing on investments in the AI sector. As we enter the second half of the year, more institutions have also announced their entry into the encryption AI field, establishing dedicated funds or increasing their investment efforts.

"Crypto for AI" has a broad market outlook

Currently, the encryption AI products on the market can mainly be divided into two major forms: "AI for Crypto" and "Crypto for AI". The former focuses on applying AI technology to encryption products, such as AI code optimization and security audits, on-chain yield strategies, AI chatbots, etc. The latter emphasizes empowering the AI industry with encryption technology, such as addressing privacy and security issues in the data collection, processing, and storage processes of AI models, and enabling community decentralized ownership or use of AI models through model assetization.

Industry professionals generally believe that "Crypto for AI" presents a broader prospect and potential in terms of market application compared to "AI for Crypto". This trend has also prompted more and more insiders in the AI industry to actively seek to leverage encryption technology to tackle the various challenges and issues faced by the AI sector.

Build an encryption AI ecosystem around the three elements of AI

Based on the three core elements driving the development of large AI models: "data, computing power, and algorithms," the encryption AI product ecosystem has formed. On the data level, encryption AI data projects cover data collection, storage, and processing. On the computing power level, decentralized GPU computing networks have emerged, creating an open market and GPU aggregation platform. On the algorithm model level, decentralized AI algorithm networks are essentially a decentralized AI algorithm service market.

2025 Outlook for the Encryption AI Track

Looking ahead to 2025, many institutions express optimism about the development of the encryption and AI markets, specifically pointing out that AI Agent-related products will experience explosive growth. The enthusiasm in the external AI field continues to rise, with a certain AI company announcing the completion of a $6 billion new financing round, resulting in a valuation soaring to $40 billion, further boosting the prosperity of the AI market.

On a narrative level, a certain AI company is undergoing a transition from a large language model to a general artificial intelligence agent, planning to launch a brand new AI Agent product in January 2025. In addition, a certain technology company's annual AI summit will also be held in March 2025, which is the focus of attention in the encryption and AI industries.

At the policy level, the new President of the United States has announced the appointment of a person with dual investment experience in the encryption and AI industries as the head of artificial intelligence and cryptocurrency affairs at the White House, which is believed to promote the integration of encryption and AI.

Overall, the vigorous development of encryption AI in 2024 has laid a solid foundation for 2025, and the combined effects of various factors indicate that the encryption AI sector will continue to maintain a strong growth momentum in 2025.