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Sizing the Crypto x AI Market

DATE POSTED:January 15, 2025

Since October, AI agent tokens have rapidly proliferated, joining TAO to form the foundation of a burgeoning new crypto sector. The Crypto x AI space is beginning to show the hallmarks of a dominant meta, characterized by increasing retail participation, compelling speculative narratives, and favorable market conditions. Historical examples like the DeFi boom of 2020/2021, the SOLUNAVAX run of 2021, and the memecoin surge of 2023/2024 all demonstrated these traits, achieving collective market caps far exceeding AI's current standing. With the AI index closing 2024 at approximately $14 billion, the sector holds considerable growth potential, with a base case projection suggesting it could expand to $100 billion in market cap.

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