AI agents using smart contracts will revolutionize crypto

The synergies between AI and crypto are very promising. In fact, the new Trump administration is consolidating the two sectors into a single advisory office.

The president-elect calls him the White House crypto and AI czar. Trump’s appointee for the position, former PayPal COO David Sacks, has strong ties to payments and crypto.

AI could transform digital assets

The AI ​​and Cryptography File placed the question: “Are AI agents the future of digital assets?” » Virgin Islands-based crypto exchange for users outside the United States says: Probably.

The memo defines AI agents as decentralized, autonomous and intelligent software that can use blockchain with some dexterity of a human.

Their owners can use AI agents for “tasks such as trade execution and portfolio management to improve efficiency and scalability,” the industry report says. It highlights a recent press page from Stanford University announcing a research partnership with Eliza Labs, linked to ai16z.

“Partnerships like Eliza Labs and Stanford University’s Future Digital Currency Initiative are advancing this intersection, while projects like AI16z highlight the potential of decentralized and autonomous AI agents to optimize blockchain networks,” the document states.

Furthermore, the Bitfinex report states: “These AI agents are expected to perform tasks such as executing trades, managing portfolios, and optimizing investment strategies, with the potential to streamline operations while introducing new efficiencies. »

But it’s not all sunshine and rainbows. The report highlights significant risks and challenges that require “robust safeguards, ethical guidelines, and built-in safeguards to prevent the misuse or exploitation of autonomous agents.”

What this could mean for Altcoin prices

As many as 11 AI-driven, AI-powered, or AI-adjacent cryptocurrencies have already reached multi-billion dollar market caps. This is according to data from CoinMarketCap, which lists assets such as:

Bittensor (TAO), Artificial Superintelligence Alliance (FET) and AIOZ Network (AIOZ).

Meanwhile, a meme coin, Goatseus Maximus (GOAT), exploded from nothing in October to over $1 per token and a total market cap of $1 billion in November. The rally is due in large part to two AI agent chatbots who came up with a compelling origin story for the piece.

Automated and autonomous AI applications running on decentralized smart contract finance platforms like Ethereum and Solana could add similar value to these ecosystems. As a result, they could attract similar capital and liquidity to support their operations. This would introduce longer-term support for many altcoin prices.