AI Agents Should Focus on Utility Over Token Issuance

AI agents should prioritize their utility instead of launching their own native tokens to raise funds.

Tokens related to AI agents experienced a significant decline last month, with their total market capitalization dropping by more than 21%, now standing at $27 billion, according to CoinMarketCap data.

While this decline may be part of the broader crypto market correction, another reason could be the insufficient focus on intrinsic utility. According to Changpeng Zhao, the founder and former CEO of Binance, although crypto is the currency for AI, not every agent needs its own token. Agents can charge fees in existing cryptocurrencies for providing services.

In a March 17 X post, Zhao wrote:

“While crypto is the currency for AI, not every agent needs its own token. Agents can charge fees in an existing crypto for providing a service.” “Launch a coin only if you have scale. Focus on utility, not tokens,” he added.

Zhao’s comments came during a time when AI cryptocurrencies experienced a major decline, with these tokens losing over 61% of their peak value of $70.4 billion since the downturn began on December 7.

Independent Transactions and Growing Interest, But Lack of Investment

Many venture capital firms, including Pantera Capital and Dragonfly, are excited about the future of AI agents, but have yet to invest in them, according to a panel discussion at Consensus 2025 in Hong Kong.

AI agents are executing independent transactions on the blockchain and gaining attention for promises of increasing online productivity and streamlining decision-making processes. This concept gained attention after a December 16 post by Luna, an AI agent on Virtuals Protocol, requesting image generation services, followed by a response from STIX Protocol.

Luna paid STIX Protocol’s AI agent $1.77 worth of VIRTUAL tokens. However, with Virtuals Protocol’s revenue dropping by 97%, demand for AI agents appears to be decreasing.

Industry observers believe that AI cryptocurrencies will experience significant growth in 2025. According to Bitget Wallet COO Alvin Kan, platforms like ai16z and decentralized trading protocol Hyperliquid, launched by AI agents, are “poised for growth in 2025,” signaling a tech-driven shift with added risk.

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