While Bitcoin remains the safest bet in cryptocurrency, some traders are looking for riskier investment opportunities that present more upside potential, like the emerging field of AI cryptocurrencies.

The current Bitcoin correction under $100,000 is driving more interest in AI-crypto projects, such as AI platform ai16z and decentralized trading protocol Hyperliquid, according to Alvin Kan, chief operating officer of Bitget Wallet.

Both ai16z and Hyperliquid are “poised for growth in 2025,

Ai16z is considering creating a platform similar to Sugarg.fun for launching AI agents, according to a post on its governance forum. It is also contemplating “[p]ositioning ai16z as an L1 blockchain for AI,” the post added.

Showcasing the lucrative financial opportunity, onchain AI agents generated a cumulative $8.7 million worth of revenue in the five weeks leading up to June 2024, according to VanEck data.

The industry surpassed 1 million blockchain-based AI agents on June 12, 2024.

Related: 2025 will be the year of AI agents, Web3 execs say

AI algorithms on the blockchain can generate data-driven decisions, automate processes and drive more efficiency for decentralized financial systems,

“Projects leveraging AI to optimize financial operations, analyze onchain data, or create new monetization models are likely to gain traction […] Emerging areas such as decentralized identity, gaming and innovative infrastructure solutions may present cyclical growth depending on market sentiment.”

The intersection of blockchain and AI is seen as a transformative technological paradigm due to their complementary nature. While AI is dependent on reliable data sets, blockchain can ensure the transparency and trustworthiness of the data source for AI algorithms.