AI tokens slide 64% despite 86% usage spike and $1.3B raised — Is the hype sustainable?

Artificial intelligence agents are exploding across the Web3 ecosystem, but AI tokens are telling a different story.

According to a June 26 report by DappRadar, on-chain activity tied to AI agents has grown 86% since January, reaching 4.5 million daily unique active wallets in June. That gives the sector a 19% share of total Web3 activity, up from just 9% at the start of the year and nearly equal to gaming’s 20% dominance.

“AI agents are clearly emerging as a new interface layer for Web3,” the report noted, pointing to a shift in user behavior. From decentralized finance trading copilots to gaming companions and social media agents, users are increasingly relying on AI to automate interactions on-chain.

Despite this rapid adoption, market sentiment around AI tokens has cooled significantly. The total market capitalization of AI tokens has decreased by 64% from its peak in early June, from $16.6 billion to $5.9 billion Although the daily trading volume of $1.4 billion is still high, the decline highlights the volatility that still defines much of the space.

There is a sizable amount of capital backing this trend despite the decline in market capitalizations. With $1.39 billion raised so far this year, AI agent projects have already surpassed 2024’s full-year total by 9.4%. Platforms like Virtuals Protocol ( VIRTUAL ) have led the charge, with over 17,000 agents launched since November 2024, an average of 85 per day.

On the infrastructure side, Matchain dominates all networks, with almost 1.9 million daily users, followed by opBNB and Nebula. The top three regions using AI dapps are Europe, Asia, and North America, suggesting a broad, global demand.

But not everything that glitters is gold. While AI tokens claim utility such as user activity automation or powering staking mechanics, others are little more than hype-fueled memecoins riding the narrative. DappRadar issued a warning about the industry’s low “signal-to-noise” ratio, where speculative tokens frequently surpass real technological advancements.

The Web3 AI industry is at a turning point as usage metrics increase while token prices decrease. AI agents may become the distinguishing user layer of the next stage of cryptocurrency if actual utility catches up with the hype . Otherwise, at least for the time being, the hype might surpass sustainability.