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Crypto AI Agents Face Bear Market, But DeFAI Brings Hope

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Crypto AI agents are in a tough spot right now, with market caps declining around 60-70% in the past two months. Yet, there is strong potential for sustainable growth. The volatility inherent in crypto can weed out unsuccessful projects while fostering a sense of determination and innovation.

DeFAI remains an intriguing area of investment, and many members of the Ethereum community still foresee strong potential from combining AI and crypto.

Do AI Agents Have a Place in Crypto?

AI agents were touted as the next big thing in Web3 just a few months ago. However, volatility and speculative trading has severely impacted the sector.

Last month, the sector’s market cap fell 65%, and new launches have seen mixed success. Now, some community members are speculating that the whole concept was a fad and that meme coins will subsume all demand.

Case in point, AI agents’ market cap is down 60-70% from the start of 2025.

AI Agents Market Cap
Crypto AI Agents Market Cap. Source: CoinGecko

Despite these bearish figures, not everyone in crypto shares this dismal vision. This industry has always been defined by its volatility and boom and bust cycles.

However, from shock incidents like market collapses to scheduled events like Bitcoin halvings, bear cycles always present an opportunity to weed out nonviable projects. Successful fundamentals win out.

“AI agents are not over. They’re on the path of adoption like the majority of other technological breakthroughs.Initially, people believed every AI project would be worth billions. Now, after months of development and the natural elimination of unsustainable projects, people are more bearish than ever. This is the exact time to lock in for solid projects,” developer DeFi Warhol claimed.

He claimed that AI agents hit a “peak of inflated expectations” in late 2024, which led to widespread disillusionment at the first sign of trouble. However, ambitious developers are still trying to innovate and are determined work will bring new projects to the markets.

Popular AI investor 0xJeff posited that one area looks particularly fruitful for future investment: DeFAI, which merges DeFi with AI.

“The best way to build a highly differentiated AI agent is to tap into existing high-value verticals. One of the best sectors is DeFi—many highly matured sub-sectors offer tons of value with ~$100 billion TVL combined. The easiest way to start isn’t by adding AI—it’s by bringing DeFi to AI agent tokens,” he claimed.

Before the AI agent space hit this bear market, DeFAI was already heralded as a potential growth area. 0xJeff identified a few extant projects that already have high potential, claiming that AI could make complicated DeFi instruments more intelligible to the average user.

This simple integration could be a massive value-add to projects like Pendle or GammaSwap.

DeFi projects in categories like liquid Staking, restaking, yield markets, and stablecoins can benefit from AI agents. Additionally, community members are reporting that the hype isn’t dead yet.

At ETHDenver, the Ethereum community’s biggest conference, AI integration was a key agenda. So, the crypto AI agents bubble might have popped, but real tangible growth is likely just starting.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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MANTRA Launches $108 Million RWA Fund As OM Price Surges

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MANTRA is planning to launch a $108,888,888 Ecosystem Fund to drive RWA innovation over the next four years and help accelerate projects in MANTRA’s blockchain ecosystem.

MANTRA’s native token OM has shown significant resilience in the current market downturn. OM is currently the only altcoin among the top 30 tokens to have posted positive gains over the past 24 hours. 

MANTRA’s RWA Ecosystem Fund

MANTRA, a Layer-1 blockchain for asset tokenization, is heavily invested in the RWA market. Since its mainnet launch in 2024, it has carried out major partnerships and planned to tokenize huge volumes of assets.

Today, it announced the launch of a $108,888,888 Ecosystem Fund to propel RWA innovation in its blockchain ecosystem.

“In an era where blockchain technology is revolutionizing finance, the MEF will serve as a catalyst for groundbreaking projects that drive real-world adoption through a focus upon the tokenization of real world assets. We are opening doors for visionary founders and teams to join us in building and creating a thriving ecosystem,” claimed John Patrick Mullin, founder and CEO.

Mullin delivered these comments in an exclusive press release shared with BeInCrypto. MANTRA plans to deploy this fund over the next four years, working with “a strong network of partners and investors” to maximize RWA growth.

The firm also claimed that its new license approvals in Dubai will allow it to facilitate advanced financial services.

MANTRA successfully obtained a Virtual Asset Service Provider (VASP) license, which will allow it to act as a crypto exchange and offer broker-dealer, management, and Investment Services. With these tools, the network can direct RWA investment.

Since the RWA Fund announcement, the OM token has actually performed quite well today. Given the wide-scale liquidations across the crypto market due to Trump’s tariff threats, OM has gained over 2% in the past 24 hours.

In fact, MANTRA’s native token is the only cryptocurrency among the top 30 to have any positive gains. It’s also among the top 5 highest gainers in the market today.

mantra (OM) price chart
MANTRA (OM) Daily Price Chart. Source: BeInCrypto

Overall, investors seem extremely confident in MATRA’s growth and the network’s continuous development. The project’s latest investment fund reflects its commitment to influencing positive developments in the RWA ecosystem.

Meanwhile, the find will likely encourage more RWA projects to launch or shift to the network, increasing MANTRA’s utility. According to DefiLlama, the network only has $4.2 million in total value locked (TVL).

With this fund, the project’s main goal will be to improve participation and long-term engagement on the blockchain.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.





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AAVE Buybacks & Key Events This Week

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Several major developments across various ecosystems are expected this week, suggesting imminent volatility for tokens within the respective niches. From Aave buybacks to Trump’s reciprocal tariffs, some very interesting updates are in the pipeline.

Traders and investors can front-run the following developments and position their portfolios strategically ahead of the following events.  

AAVE Buybacks

AAVE, the native token of the Aave lending protocol, will see buybacks commence on Wednesday, April 9. This follows approval from the Aave DAO.

This move involves allocating $4 million in aEthUSDT to repurchase AAVE tokens from the open market. The goal is to reduce circulating supply and potentially boost token value.

“Buybacks will reduce AAVE’s circulating supply, making tokens scarcer and more valuable. Activating fee mechanism will create a new revenue stream for protocol; increasing demand,” noted Langerius, founder of Hunters of Web3.

The repurchased tokens will be moved to the Ecosystem Reserve, signaling a long-term strategy to enhance scarcity and reward holders. This could see the AAVE token price surge, especially if demand remains steady or increases.

The buybacks follow a tokenomics update that activates a fee switch, introducing a new revenue stream for the protocol.

“New Aavenomics update. This is Fee Switch on steroids,” wrote Stani Kulechov, CEO and founder of Aave.

This dual approach, which reduces supply and generates revenue, could make AAVE a more attractive investment.

AAVE Price Performance
AAVE Price Performance. Source: BeInCrypto

BeInCrypto data shows the AAVE token was trading for $123.62 as of this writing, down by over 16% in the last 24 hours.

Trump’s Reciprocal Tariffs

Another crypto headline to watch this week concerns President Trump’s reciprocal tariffs, which are expected to take effect on April 9. The president will introduce a tiered levy system (10%, 15%, 20%) targeting countries like China, Vietnam, and the EU. The UK faces the lowest band.

While these tariffs bolster US economic independence, they could ripple through crypto markets. In the recent past, tariffs spooked investors, driving sell-offs in risk assets, evidenced by Bitcoin’s volatility after past tariff announcements.

Traders should brace for short-term dips, particularly in Bitcoin and altcoins tied to global trade dynamics. However, Trump’s pro-crypto stance, including his strategic Bitcoin reserve, might mitigate some losses, as could a decision to delay the tariffs.

“As soon as he delays or cancels the “reciprocal” tariffs the market will bounce 10%+ immediately. That is want everyone is waiting and hoping for,” one user highlighted.

Such an outcome, however, is contingent on investors viewing digital assets as a hedge against tariff-induced inflation or currency devaluation.

$47 Million Aptos Unlocks

On April 12, the Aptos network will unlock 11.31 million APT tokens worth approximately $47.73 million and comprising 1.87% of the circulating supply. The tokens will be allocated to the community, core contributors, the foundation, and investors.

Aptos Token Unlocks
Aptos Token Unlocks. Source: Tokenomist

Token unlocks often lead to selling pressure as early investors or team members liquidate holdings. As such, the Saturday event could drive APT’s price down.

“Aptos is struggling with a strong downtrend and upcoming token unlocks, which could further dilute its value,” one user noted.

Neutron’s Mercury Upgrade

Neutron’s Mercury upgrade, its most significant to date, launches on April 9. The event promises enhanced functionality for this Cosmos-based blockchain. Such upgrades improve scalability, security, or interoperability—key for Neutron’s DeFi and cross-chain ambitions.

“Neutron’s upcoming Mercury upgrade will 11x network throughput,” the network shared.

It follows proposal #993, supported by Stakecito, and aims to transition Neutron from Cosmos Hub’s Interchain Security to full sovereignty via the Mercury upgrade. The move would enhance Neutron’s role as a smart contract platform while maintaining ties with Cosmos Hub.

A successful rollout could bolster Neutron’s position in the Cosmos ecosystem, attracting more projects and capital.

Disclaimer

In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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Is $0.415 the Key to Further Gains?

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Layer-1 (L1) coin KAVA has emerged as the day’s top performer with a modest 0.10% gain over the past 24 hours. The coin remains range-bound despite this lead, signaling a relative balance between buying and selling pressure.

Still, the sentiment around KAVA is quietly bullish. With technical and on-chain indicators pointing to a surging positive bias, the altcoin might be poised for a breakout above its narrow range.  

Buyers Dominate as KAVA Teases Break Above Resistance

Since the beginning of April, KAVA’s price has oscillated within a range. The 98th largest crypto by market capitalization has faced resistance at $0.415 and has found support at $0.392.

KAVA Price Analysis.
KAVA Price Analysis. Source: TradingView

With the gradual resurgence in bullish bias toward the altcoin, KAVA could see a break above the $0.415 resistance level in the near term.

Its positive Balance of Power (BoP) on the daily chart confirms this outlook.  At press time, this momentum indicator is at 0.20. 

KAVA BoP
KAVA BoP. Source: TradingView

The BoP indicator measures the strength of buyers versus sellers in the market, helping to identify momentum shifts. When its value is negative, sellers are dominating the market over buyers.

Converesly, a positive BoP like this suggests that buying activity outweighs selling pressure. This reflects KAVA’s growing demand and potential for its price to appreciate further.

Moreover, the coin’s positive funding rate highlights the bullish sentiment among KAVA’s futures traders. As of this writing, the metric stands at 0.0097%.

KAVA Funding Rate
KAVA Funding Rate. Source: Coinglass

The funding rate is a periodic payment between traders in perpetual futures contracts to keep prices aligned with the spot market. KAVA’s positive funding rate means long positions are paying short. This trend indicates that more KAVA traders are betting on its price to increase.

KAVA Approaches Breakout—Can It Flip $0.41 Into Support?

KAVA’s strengthening buying pressure could trigger a break above the resistance at $0.415. If this price level is successfully flipped into a support floor, KAVA’s uptrend will gain momentum and could reach $0.44.

KAVA Price Analysis
KAVA Price Analysis. Source: TradingView

Conversely, if profit-taking spikes, the coin could slip below support at $0.392. In this scenario, KAVA’s price could fall further to $0.38.

Disclaimer

In line with the Trust Project guidelines, this price analysis article is for informational purposes only and should not be considered financial or investment advice. BeInCrypto is committed to accurate, unbiased reporting, but market conditions are subject to change without notice. Always conduct your own research and consult with a professional before making any financial decisions. Please note that our Terms and ConditionsPrivacy Policy, and Disclaimers have been updated.



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