On... Crypto AI, NFT2.0?

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AI seems to be the buzz word recently. Is this sector legit or are we in NFT2.0?


NFT's were supposed to change the world in 2021, but sad to say that was a speculative bubble that popped within a year or so. Trading volumes peaked in January 2022 at about $17.6 billion, driven by hype around projects like Bored Ape Yacht Club and CryptoPunks. By September 2022, volumes had crashed roughly 97%, with average NFT prices dropping from $4,000 in early 2021 to under $1,500 by mid 2022.


Fastforward to Q4 2024, something else exploded into the scene that caught my attention. Terminal Truth was released and it got the attention of Marc Andressen who funded it with some BTC. At around the same time was the Virtuals protocol explosion with AI agents such as Luna and AIXBT. So begins the AI space race, but I was not ready to dip my toe in yet. Raol's talk about the Economic Singularity also piqued my interest thereafter.


The question was, how was I going to invest in this sector? If AI was really the future, surely I had to dip my toes in. The most obvious play was of course investing in Nvidia, but I personally don't add to my stocks long term hold anymore. With the advent of Virtual Protocols, the trend of AI agents with their own coins spread like wildfire. And that turned out to be the missing piece of the puzzle - the intersection between AI and crypto.


The market indeed went viral (Unfortunately, I missed the initial pump). For example, Fartcoin went as high to $2 Billion in market cap within a few months. But as fast as they inflated, they dumped just as fast. Most AI coins retraced about 90% from All Time High (see Fartcoin below as an example). And all this within 6 months! Is this indeed NFT2.0? Just another speculative bubble? Nonetheless, something about the space intrigued me very much. So, I started going deeper down the rabbit hole circa March 2025, about 6 months late to the game.


Is this NFT2.0 and am I going to get rugged again? Only time will tell.




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