Cryptocurrencies and artificial intelligence: prospects and risks in 2025

Why are investors increasingly paying attention to AI tokens?

Innovation and synergy of blockchain and AI

One of the main reasons why investors are showing interest in AI tokens is the synergy between blockchain technology and artificial intelligence. AI has the potential to significantly improve the functionality of blockchains, increase their security, and optimize processes such as transaction processing and decision-making.

An example is using AI to analyze and predict trends in cryptocurrency markets. According to a Deloitte study, 65% of large financial institutions believe that artificial intelligence will help them significantly improve their significant data operations, including in cryptocurrencies.

It's also worth noting that amid the growing interest in DeFi platforms, AI is helping automate smart contract processes. For example, projects like SingularityNET are actively using AI to develop decentralized applications (dApps), allowing developers to create more accurate and secure algorithms to work with cryptocurrencies.

The growing popularity of AI in other industries

The application of AI in various industries, such as healthcare, finance, marketing, and others, is driving interest in using AI in the cryptocurrency sphere. AI's impact is particularly notable in areas such as trading strategy automation and big data analytics.

For example, IBM Watson Health analyzes millions of medical data, helping doctors diagnose cancer with 96% accuracy, which is higher than the average diagnosis rate without AI (75-85%).

In the financial sector, JPMorgan Chase uses COiN to analyze up to 12,000 legal documents in seconds, saving 360,000 hours of legal work. Mastercard and Visa are using AI to identify suspicious transactions, which has reduced fraud losses by 35%.

In marketing, Amazon, Google, and Facebook are using AI for personalized recommendations and targeted advertising. For example, 35% of Amazon's revenue is generated by algorithms that analyze customer purchases and behavior.

Similarly, Netflix and Spotify use AI for content recommendations to increase user engagement.

According to a report by PricewaterhouseCoopers (PwC), one of the leading consulting firms, more than 90% of surveyed CEOs of large companies expect AI to play a key role in their business by 2025. This reflects the global trend toward AI adoption in traditional areas and the crypto industry, where vast amounts of data and high volatility require fast and accurate analysis.

New opportunities for monetization and business

Using AI in cryptocurrency projects opens up new monetization models, including sponsorship, affiliate links, and token sales, making them attractive to investors.

Sponsorship allows AI agents and chatbots to promote brands and products, as Autonolas does by partnering with cryptocurrency exchanges and DeFi projects.

Affiliate links are used in AI analytics to help users find the best exchanges and DeFi platforms. For example, CryptoGPT offers verified services through AI bots, and Numerai attracts customers through an affiliate program.

Token sales enable projects to create decentralized economies, such as Fetch.ai, where FET tokens are used to pay AI agents, and SingularityNET, which allows AI models to be developed and sold for AGIX tokens.

With the development of AI infrastructure in the cryptocurrency industry, new forms of interaction between users and businesses are emerging. AI can analyze data, predict risks, and offer personalized investment strategies.

For example, Binance Sensei uses machine learning to select optimal crypto assets, while CryptoHopper manages investors' portfolios by balancing assets and automatically switching to defensive strategies during periods of volatility. According to Messari, this can increase returns by 20-40%.

Reducing risk through automation

One of AI's main advantages is the automation of processes, which is especially important in volatile crypto markets, where prices can change by 10-30% in a day.

Algorithmic trading systems such as CryptoHopper and 3Commas use machine learning to execute trades, minimizing human error and increasing profits automatically. According to Messari, algorithmic bots provide up to 40% higher returns compared to manual trading.

In the DeFi sphere, projects such as Yearn.Finance uses AI to automatically move liquidity between different pools, selecting the best terms for users.

In addition, AI analytics in IntoTheBlock and Santiment platforms predict market behavior by analyzing massive amounts of transaction data, investor sentiment, and significant capital flows, helping traders avoid sharp drops and exit positions on time.

According to Accenture research, in 2024, 58% of large investors said that using AI helps them reduce investment risk because AI can analyze large amounts of data and make more accurate predictions.

AI is key in securing cryptocurrency transactions by identifying suspicious behavior patterns and preventing fraud. For example, Chainalysis and Elliptic use machine learning to track illegal transactions, analyze millions of transactions, and identify money laundering and terrorist financing schemes, which has helped block more than $2.5 billion in illicit funds in 2024.

In addition, exchanges Binance and Coinbase use AI to automatically detect hacked accounts by detecting sudden changes in IP addresses and suspicious withdrawal requests.

In the DeFi sector, CertiK uses AI to audit smart contracts, preventing hacker attacks and code vulnerabilities, which has helped safeguard more than $500 million in user assets in 2024.

What AI projects are gaining popularity?

• Virtuals Protocol (VIRTUAL) is one of the brightest examples of AI implementation in cryptocurrencies. This project uses AI to create autonomous agents that can analyze and make decisions in real-time based on current blockchain data and market trends.
• Ai16z (AI16Z) has become popular among investors because it provides more accurate predictions than traditional analytical tools.
• Fetch.ai (FET), based on machine learning, creates autonomous agents that can conduct business while minimizing human intervention.
• SingularityNET (AGIX) allows developers to create, train, and deploy blockchain-based AI models. The project is actively growing as it opens up access to decentralized AI services to users worldwide.

Potential risks when investing in AI tokens

Like most cryptocurrencies, AI tokens are subject to substantial volatility. According to CoinMarketCap, volatility in the AI cryptocurrency market remains high in 2024. For example, the VIRTUAL token lost up to 30% of its value in weeks, which is common in the cryptocurrency market.

Regulatory uncertainty is an essential risk for cryptocurrency projects. In 2025, new legislative initiatives regarding AI and cryptocurrencies are expected in various countries. For example, in the US, the Federal Reserve (Fed) and the Securities and Exchange Commission (SEC) are considering regulating the use of AI in cryptocurrency transactions, which could impact the market.

With the rapid development of AI technologies, many cryptocurrency projects risk becoming obsolete if they cannot adapt to new algorithms and machine learning models. For example, in 2023, the DeepBrain Chain (DBC) project, which initially attracted attention as a blockchain platform for AI-based decentralized computing, faced stiff competition from more robust solutions such as SingularityNET (AGIX) and Fetch.ai, leading to a decline in its market value.

In addition, outdated tokenomics models can decrease projects' investment attractiveness — this was the case with Numerai, whose AI model for predicting markets was unable to compete with dHedge's more accurate and efficient algorithms.

These examples show that projects that do not update their technology and adapt AI solutions to new market conditions risk losing investors and losing ground to more innovative competitors.