2025 encryption AI Top 10 Predictions: Bittensor Revival, Practicality is King, Synthetic Data Surpassing Human Data..

Decentralization's AI is still in its infancy, and a lot of talent is gathering. New protocols, new token models, and new Open Source frameworks will continue to emerge, with the top 10 predictions for the encryption AI track in 2025. This article is based on an article written by Teng Yan and was compiled, compiled and written by odaily. (Synopsis: A quick overview of the four categories of the AI Agent track: framework, Launchpad, application and meme) (Background supplement: AI will be the main narrative line of this cycle? The future of the encryption AI zone is attractive, and although it lacks historical examples and clear trends, it also means that it is at a new starting point, waiting for future development. It's even more exciting to think about waiting for 2026 to look back on all this and see the gap between what is expected at the beginning of 2025 and what it really is. The total market cap of the encryption AI zone will reach $150 billion At present, the tokens of the encryption AI zone account for only 2.9% of the copycat coinMarket Cap, but it is believed that this proportion will not last long. As AI gradually expands into new areas such as Smart Contract platform, meme, Decentralization physical infrastructure (DePIN), agent platform, data network, and intelligent orchestration layer, its convergence with Decentralized Finance and Meme Token has become an inevitable trend. Confidence in the encryption AI zone is because it is at the intersection of two of the most powerful technology trends: AI mania triggering event: OpenAI's initial public offering or similar event could spark a global AI frenzy. Meanwhile, Web2's institutional capital has invested in followDecentralization's AI infrastructure. Retail frenzy: The concept of AI is easy to understand and exciting, and now they can invest through tokens. Remember the gold rush of Meme coin 2024? It will be the same frenzy, except that AI will change the world more practically. Bittensor's revival Bittensor (whose token name is TAO) has been around for years. It is a veteran player in this field. Despite the craze around artificial intelligence, its token price has been hovering at the level of a year ago. But in fact, the digital hive thinking behind Bittensor quietly advanced, more subnets emerged, registration fee drops, subnets surpassed the corresponding technology of Web2 in actual performance such as inference speed, and at the same time, EVM compatibility introduced Decentralized Finance functions, further enriching Bittensor's network. So why hasn't TAO soared? The steep Inflation program and the move to a platform for AI agents have limited it. However, dTAO, which is expected in the first quarter of 2025, could be a significant turning point. With dTAO, each subnet will have its own tokens, and the relative prices of these tokens will determine how the releases are distributed. Why Bittensor has a chance to explode again: Market-based release: dTAO links block rewards directly to innovative and actually measurable performance. The better a subnet performs, the more valuable its token will be — and therefore, the more it will be released. Focus on capital flows: Investors are finally able to target specific subnets that they are optimistic about. If a subnet takes an innovative approach to distributed training and succeeds, capital can flow into the subnet to make an investment point. EVM integration: Compatible EVMs attract a broader community of encryption-native developers to Bittensor, bridging the gap with other networks. The various subnets are currently being followed and the actual progress they have made in their respective fields is being documented. Expect a similar @opentensor version of the Decentralized Finance summer at some point. Third, the computing market is the next L1 transaction The insatiable demand for computing will become an obvious megatrend. NVIDIA CEO Jensen Huang has said that the demand for reasoning will surge "a billion times". This exponential rise will disrupt traditional infrastructure planning and urgently call for "new solutions". The Decentralization compute layer provides raw computations (for training and inference) in a verifiable and cost-effective manner. Startups like @spheronfdn, @gensynai, @atoma_network, and @kuzco_xyz are quietly building a strong foundation to take advantage of this, focusing on products rather than tokens (none of these companies currently have tokens). As AI model training for Decentralization becomes feasible, the addressable market is expected to rise dramatically. For the encryption AI zone, compare the L1 zone: Just like 2021: Remember when Solana, Terra, and Avalanche fought to be the "best" L1? We'll see a similar battle between computing protocols, competing for developers and AI applications to build on their compute layers. Web2 demand: The $680 billion to $2.5 trillion cloud computing market far exceeds the encryption AI market. If these Decentralization computing solutions can reach even a fraction of traditional cloud customers, there will be a chance to see the next 10x or 100x rise wave. Just as Solana stands out in L1, the winner here will dominate a new front end that closely follows three criteria: reliability, cost-effectiveness, and developer-friendly tools. By the end of 2025, 90% of on-chain transactions will no longer be triggered by humans manually clicking "teleport". Instead, these transactions will be executed by an army of AI agents that will continuously rebalance liquidity pools, distribute rewards, or perform micropayments based on real-time data sources. All this is not as far-fetched as it seems. Everything we've built over the past seven years (L1, rollups, Decentralized Finance, Non-fungible Tokens, etc.) has quietly paved the way for an AI-led on-chain world. @autonolas Broker's transactions on GNOSIS So, why this shift? No more human error: Smart Contract executes exactly as coded. AI agents can process large amounts of data faster and more accurately than a group of humans. micropayment: AI agent-driven transactions will become smaller, more frequent, and more efficient. Especially as Solana, Base, and other L1/L2 transaction costs tend to decline. Invisible infrastructure: Humans would gladly give up direct control if that meant less trouble. Trusting Netflix to auto-renew and trusting an AI agent to automatically rebalance users' Decentralized Finance parts is a natural next step. AI agents generate a staggering amount of on-chain activity, but the biggest challenge will be to make these AI agent-powered systems accountable to humans. As the ratio of AI agent-initiated transactions to human-initiated transactions increases, new governance mechanisms, analytics platforms, and auditing tools will be required. 5. Agent-to-agent interaction: the rise of the concept of AI clustering AI agent groups refer to tiny AI entities that work together seamlessly to execute giant AI entities.