Decentralized AI to Capture $1.8 Trillion Market, Analyst Estimates
Analyst Miles Deutscher says artificial intelligence (AI) is steadily becoming one of the most transformative narratives in the cryptocurrency space.
In a recent post on X (formerly Twitter), Deutscher laid out his optimistic thesis for AI-integrated crypto projects. He highlighted the huge growth potential of the industry as it gains traction within the decentralized ecosystem and the wider financial market.
Why AI-powered cryptocurrencies are poised to grow
Deutscher Overview There are huge opportunities in the field of artificial intelligence. It is predicted that the total addressable market (TAM) of the global artificial intelligence market will reach US$12 trillion in the next 6 to 7 years. If decentralized AI captures just 5% of the market, the valuation could reach $600 billion, a 15-fold increase from current levels.
Adding to the speculative premium, analysts estimated The industry’s potential is $1.8 trillion, equivalent to a 45x opportunity. Despite the attention AI has attracted, Deutscher noted that AI-focused crypto projects remain underrepresented, ranking 34th in the crypto industry by market capitalization. As interest grows, he predicts that artificial intelligence may enter the top ten cryptocurrencies next year.
Deutscher’s paper revolves around four key factors driving AI cryptocurrency adoption. First, the emergence of mainstream AI awareness as public interest in the social impact of AI fuels popular interest.
Second, the innovative momentum of regularly released AI products maintains the industry’s visibility. This is consistent with cryptocurrency’s attention-driven economy.
Third, cryptocurrencies have lower barriers to entry than traditional stocks, providing retail investors with a convenient and cost-effective way to participate in the growth of AI. Finally, the synergy between artificial intelligence and cryptocurrencies yes brought about by the rise of autonomous artificial intelligence agents capable of executing on-chain transactions Portfolio Management. Deutscher said this highlights the practical integration of artificial intelligence and blockchain technology.
As artificial intelligence continues to attract global attention, its integration with blockchain technology is expected to reshape both industries. AI-driven crypto projects offer new opportunities for innovation and investment. This is from autonomous trading agents to decentralized data processing.
Deutscher’s picks for the best artificial intelligence cryptocurrencies of 2025
Deutscher reveals the AI cryptocurrencies he’s most focused on, highlighting infrastructure and pick-and-shovel play across AI verticals:
Bit Tensor (TAO): As a leader in decentralized artificial intelligence research, TAO has been adopted by the scientific community. Recent Ethereum Virtual Machine (EVM) compatibility enables further expansion.
near agreement (near): Established first floor Blockchain integrates AI capabilities, near Combining reliability with innovation, maintaining 100% uptime since launch.
hastily): Grass Connecting real-world data with AI-powered crypto applications with strong community support following a successful airdrop.
Spectrum (Specification): SPEC focuses on artificial intelligence agent infrastructure to enable autonomous, personality-driven agents to transact and participate on-chain.
Deutscher emphasized that many of his options were pick-and-tack plays.—protocol Facilitate the development and deployment of AI-based tools. These include computing infrastructure, decentralized LLM, and AI-focused blockchain. He believes these foundational layers will underpin the next wave of innovation and adoption Artificial Intelligence and Cryptocurrency.
“Mainly, we have AI agents and agent infrastructure, computing and DePIN, decentralized LLM, and AI blockchain/infrastructure for AI dApps. I am investing in all these verticals with a special focus on agents /Artificial Intelligence Infrastructure,” Deutscher additional.
While Deutscher is optimistic, he acknowledges that the projects he highlighted have different risk profiles. He emphasized the importance of due diligence, especially for small-cap tokens that have higher upside potential but are increasing. volatility. For investors, balancing exposure between large-cap and small-cap projects is critical.
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