AI Token Frenzy Continues

Fear of missing out prevails as traders pile into any new token that has the word “AI” associated with it.

By: Squiffs • January 03, 2025

The AI agent token craze on Solana is reaching new levels of froth.

Led by the parabolic price action of AI16z and VIRTUAL, degen traders are piling into newer tokens to try and catch the next big mover.

Over the last 48 hours, mid-cap (medium market capitalization) tokens in the AI space have been pushed to new all-time highs. Some notable movers include SWARMS, Universal Operating System (UOS), and Alchemist (ALCH), which are all AI agent infrastructure-based tokens.

Since Jan. 1, SWARMS is up 140% to a $175 million valuation, ALCH has doubled to $218 million, and UOS is up 525% to $26 million.

While the established mid-cap tokens pump, trench traders are exhibiting maximum levels of FOMO (fear of missing out) as scam projects are pumping higher than usual.

As a result, PumpFun activity has also been surging yet again. Daily active users (DAU) over the last two days are back near all-time highs, with an average of 210,000 DAU, compared to roughly 175,000 average DAU in December.

While PumpFun and Memescope, a memecoin trading hub on Photon, are full of traders trying to catch the next big AI token, some investors feel that the winners have already been established.

“The best products in borrow/lend and DEX are not Aave and Uniswap, but these two command the highest valuations even years later. Similarly it is likely the biggest AI agent token will just be the first one that got traction (Virtuals), irrespective of UI/UX,” said 0xSisyphus, a prominent investor and trader.