The artificial intelligence sector is witnessing a rapid surge in the development and deployment of AI agents, but for crypto and Web 3, not all is as it seems.

Most of these AI agents are free and open-source, challenging the notion that tokenized models are necessary for AI evolution.

Non-Tokenized AI Agents Outpace Crypto Solutions in Popularity

Data from the AI Agents Directory indicates an average monthly increase of 35% in the number of AI agents. However, despite the growing interest, Web3-based artificial intelligence solutions still account for a minimal fraction (3%) of the overall AI agent ecosystem.

Further, data shows that users and developers’ most sought-after AI agents do not include any from the Web3 sector. This highlights the lack of mainstream traction for crypto-integrated AI solutions.

Hitesh Malviya, an analyst and popular figure on X, echoed this sentiment in a post.

“If you look outside the crypto echo chamber, you’ll find that we do have a solid ecosystem of free and better AI agents—and they don’t have tokens, nor might they ever need one. So, what we’re trading in the name of agents is nothing but memes—a value we created out of thin air, like we always do,” Hitesh observed.

The emergence of tools like Manus, ChatGPT Operator, and n8n has made it easier than ever for individuals and businesses to develop and deploy their own tailored AI agents. These platforms allow users to create AI-powered solutions without needing a native token.

This reinforces the idea that tokenization on blockchain is not an essential component of AI agent functionality. Meanwhile, the debate surrounding AI agent tokens has also drawn criticism from industry insiders. On-chain detective ZachXBT recently slammed AI agent tokens, saying 99% are scams.

The blockchain sleuth’s concerns align with broader skepticism regarding tokenized AI projects. Many have been accused of leveraging AI hype without delivering substantive technological advancements.

Similarly, a recent survey of Solana (SOL) ecosystem founders revealed widespread skepticism about the utility of AI agents. As BeInCrypto reported, most Solana developers see AI agents as overhyped.

“The focus on AI agents distracts from core blockchain innovation. They’re more of a gimmick than a necessity in the space,” one respondent noted.

However, the crypto AI agent sector is not entirely stagnant. Recent reports suggest that new launches within the Web3 space are on the rise again. Despite the criticisms, some developers and investors still see potential in blockchain-integrated AI solutions.

As the AI agent industry grows, experts also examine its impact on the workplace. Discussions among industry leaders suggest that AI agents will play a transformative role in automating tasks, streamlining workflows, and enhancing productivity across various sectors.

The AI agent revolution is moving forward, with or without tokenization. As open-source and non-tokenized AI solutions continue gaining traction, AI-driven automation’s future may depend more on accessibility and practical application rather than speculative token economies.

The market will ultimately decide whether blockchain-based AI agents can carve out a lasting niche or if they will remain overshadowed by their non-tokenized counterparts.

Bittensor (TAO) price has been facing a tough battle recently. It failed to break out of a descending wedge pattern, resulting in significant losses. 

Despite these setbacks, the hope for a recovery remains strong, as several key indicators suggest that a rebound may be on the horizon for the altcoin.

Bittensor Could Be Imitating Its Past

The Relative Strength Index (RSI) for Bittensor is currently recovering from the oversold zone, where it fell for the first time in eight months. This signals a potential turnaround, as the last time TAO entered the oversold region, it managed to bounce back and rally by 60%. Although such a large rally may not be expected this time, the historical pattern suggests that TAO is poised for a recovery.

As the RSI begins to climb back from its lows, investor confidence could start to improve. While the magnitude of the rally may be smaller this time, a return to more neutral or bullish territory is likely, which could help push the price of Bittensor back on an upward trajectory.

Bittensor’s broader macro momentum is also showing signs of potential recovery. The Sharpe Ratio, a key technical indicator, is deeply negative at the moment, but this has historically been a sign of future price recovery. When the Sharpe Ratio reached similar levels in the past, TAO managed to reverse its downtrend, making it a key signal for future upward movement.

As the Sharpe Ratio starts to stabilize, it could indicate that Bittensor’s risk-adjusted returns are improving. This suggests that TAO might be entering a phase where positive returns are more likely, potentially signaling the start of a recovery phase after its recent losses.

TAO Price Set To Bounce Back Soon

TAO recently experienced a significant 45% decline over two weeks, primarily due to its failure to break out of the descending wedge pattern. However, TAO is now trading at $264, having bounced off the lower trend line of this pattern. The altcoin remains stuck under the $300 mark, but it appears poised to breach this resistance in the near future.

If Bittensor can successfully break above the $298 level, it will signal a breakout from the descending wedge pattern. This could trigger a bullish rally, with the price targeting $351. Such a move would confirm the pattern’s completion and open the door for further price increases, marking the start of a recovery phase.

However, if the altcoin fails to break above the $265 barrier, the price could fall back to $229. A drop below this level would invalidate the bullish outlook, even if the descending wedge pattern remains intact. A failure to break through $298 would likely result in more consolidation or further declines.

A study by Dragonfly indicates that Americans may have missed out on up to $2.64 billion from cryptocurrency airdrops. 

Notably, another study by CoinGecko suggests this figure could be as high as $5.02 billion. So, what are the reasons behind this situation?

Americans Face Restrictions in Participating in Cryptocurrency Airdrop

Dragonfly’s research findings are based on 12 cryptocurrency airdrops, including Uniswap and 1inch. Of these, 11 airdrops imposed restrictions on US IP addresses. Dragonfly discovered that the number of Americans affected by this IP blocking ranged from 920,000 to 5.2 million active users. This accounts for 5–10% of the 18.4 to 52.3 million cryptocurrency holders in the US impacted by geoblocking policies in 2024.

Approximately 22–24% of all active cryptocurrency addresses worldwide are US residents. The total value of the airdrops in Dragonfly’s sample amounted to around $7.16 billion. Approximately 1.9 million people globally claimed airdrops, with an average value of about $4,600 per eligible wallet address.

Based on these figures, Dragonfly estimates that Americans lost between $1.84 billion and $2.64 billion from 2020 to 2024 due to the 11 airdrops that blocked US users. Notably, CoinGecko conducted a similar analysis but with a larger sample size. Evaluating 21 airdrops that excluded Americans, CoinGecko estimates the losses could range from $3.49 billion to $5.02 billion.

The exclusion of US IP addresses from participating in crypto airdrops is a measure to avoid penalties from regulatory bodies like the Securities and Exchange Commission (SEC).

US Government Loses Nearly $3 Billion Due to Stringent Policies

The lost federal personal income tax revenue from geoblocked airdrops, based on CoinGecko’s sample from 2020 to 2024, is estimated to range from $418 million to $1.1 billion. The estimated lost state tax revenue ranges from $107 million to $284 million. This represents an estimated tax revenue loss of $525 million to $1.38 billion.

The relocation of cryptocurrency operations overseas has also significantly reduced US tax revenue. The report cites Tether as an example. Companies like Tether establishing headquarters in El Salvador may have cost the US approximately $1.3 billion in federal corporate taxes and $316 million in state taxes.

Crypto projects show caution amid potential legal challenges ahead of the new acting SEC Chair under President Trump’s administration. Blocking and losing a portion of US users is considered a safer option than facing costly litigation as is the case with Ripple, Kraken, or Coinbase.