How Tokenized AI Agents Are Slowly Losing Ground to Non-Tokenized Competitors

The artificial intelligence sector is witnessing a rapid surge in the development and deployment of AI agents, but for crypto and Web 3, not all is as it seems.

Most of these AI agents are free and open-source, challenging the notion that tokenized models are necessary for AI evolution.

Non-Tokenized AI Agents Outpace Crypto Solutions in Popularity

Data from the AI Agents Directory indicates an average monthly increase of 35% in the number of AI agents. However, despite the growing interest, Web3-based artificial intelligence solutions still account for a minimal fraction (3%) of the overall AI agent ecosystem.

AI Agents Monthly Growth Trend. Source: AI agents directory

Further, data shows that users and developers’ most sought-after AI agents do not include any from the Web3 sector. This highlights the lack of mainstream traction for crypto-integrated AI solutions.

Hitesh Malviya, an analyst and popular figure on X, echoed this sentiment in a post.

“If you look outside the crypto echo chamber, you’ll find that we do have a solid ecosystem of free and better AI agents—and they don’t have tokens, nor might they ever need one. So, what we’re trading in the name of agents is nothing but memes—a value we created out of thin air, like we always do,” Hitesh observed.

The emergence of tools like Manus, ChatGPT Operator, and n8n has made it easier than ever for individuals and businesses to develop and deploy their own tailored AI agents. These platforms allow users to create AI-powered solutions without needing a native token.

This reinforces the idea that tokenization on blockchain is not an essential component of AI agent functionality. Meanwhile, the debate surrounding AI agent tokens has also drawn criticism from industry insiders. On-chain detective ZachXBT recently slammed AI agent tokens, saying 99% are scams.

The blockchain sleuth’s concerns align with broader skepticism regarding tokenized AI projects. Many have been accused of leveraging AI hype without delivering substantive technological advancements.

Similarly, a recent survey of Solana (SOL) ecosystem founders revealed widespread skepticism about the utility of AI agents. As BeInCrypto reported, most Solana developers see AI agents as overhyped.

“The focus on AI agents distracts from core blockchain innovation. They’re more of a gimmick than a necessity in the space,” one respondent noted.

However, the crypto AI agent sector is not entirely stagnant. Recent reports suggest that new launches within the Web3 space are on the rise again. Despite the criticisms, some developers and investors still see potential in blockchain-integrated AI solutions.

As the AI agent industry grows, experts also examine its impact on the workplace. Discussions among industry leaders suggest that AI agents will play a transformative role in automating tasks, streamlining workflows, and enhancing productivity across various sectors.

The AI agent revolution is moving forward, with or without tokenization. As open-source and non-tokenized AI solutions continue gaining traction, AI-driven automation’s future may depend more on accessibility and practical application rather than speculative token economies.

The market will ultimately decide whether blockchain-based AI agents can carve out a lasting niche or if they will remain overshadowed by their non-tokenized counterparts.