AI Agent Fragmentation: Cut Through the Noise and Focus on These Key Projects

Author: 0xJeff, Steak Studio; Translation: Golden Finance xiaozou

Last year, when there were so many L1/L2 public chains that we couldn't count them with our two hands, liquidity fragmentation became a major challenge. Subsequently, Bitcoin L2 entered the market, causing the number of L2s to surge.

This has led to fragmented liquidity, attention, and experience among countless ecosystems. Many L2s and dApps in these ecosystems have struggled to gain any meaningful traction. Capital has only flowed into a few top ecosystems - those with outstanding communities, excellent products, high-quality teams, and sufficient funds to attract builders.

Now, the field of AI agents is beginning to face the same challenge. Although it is still early, the sheer number of individual agents, tokens, and new agent tokens makes it difficult to distinguish them.

The industry is facing a growing problem of agent fragmentation. Liquidity and attention are too fragmented and thin.

1. Two common tracks for AI agents

Most AI agents move along two tracks:

(1) From agent to framework

Some agents demonstrate their value by continuously attracting users and allowing them to interact with the product in real time on platforms such as Crypto Twitter (or other channels). Once these agents reach product-market fit (PMF) and gain enough attention, other teams usually want to copy what they have built.

What is the logical next step? Open source the agent. In this way, the agent evolves into a framework - making it easier for others to experiment, integrate, and build on it. This move can break the valuation ceiling that limits the agent and position it as more similar to the L1 blockchain.

We see this trend with the following agencies:

Zerebro

Dolos

AVA

Freysa

Rei

This approach allows these agencies to scale by reducing barriers for others to join their ecosystem.

(2) Continue to improve the product as an independent agency

Not all agencies will find PMF immediately. Some agencies must continue to iterate and evolve until they find the right use case. Even so, some teams would rather keep their technology to themselves than open it up to others.

For those agencies that have found PMF and are doing well, there is no need to transition to a framework - they can still continue to be independent agencies.

Examples of this approach are:

Aixbt

Griffain

So, what do we do?

• For builders: Focus on understanding the gaps in the market and building products that provide real value to users. Remember, agencies should act as a conduit to bring users into the ecosystem. In such a saturated market, it will only become more and more difficult to stand out.

• For investors: Focus on the leaders or top projects in each category. Doubling down during the dips may be the best way to consolidate attention in this fragmented space.

2. Current categories and narratives and projects worth noting

(1) Alpha-centric KOL agents

These agents dominate in outputting alpha (insights, data synthesis, and analysis). Aixbt leads in mind share. While this is not a winner-takes-all market, the leaders will receive a disproportionate amount of attention.

Tokens worth noting include: AIXBT, REI, TRISIG, TRUST, AGENCY, KWANT

（2）InvestmentDAO

These DAOs focus on strategic investment. The winners in this field are usually those DAOs that can effectively execute strategies and provide strong PnL.

Examples are as follows:

VADER, AIXCB, AIMONICA, SEKOIA, WAI, AROK

Other platforms in this field include Virtuals, ai16z, daos.world and daos.fun.

(3) Agent virtual world/game x AI

This is a young field with huge potential. Realis pioneered this trend, but Hyperfy is now the leader in world-building infrastructure. Smol and Arc Agent are exploring AI-based games and gamification mechanisms with reinforcement learning.

The main tokens are as follows:

HYPER, REALIS, SMOL, NRN

(4) DeFAI / Abstraction Layer

This is a highly competitive field with multiple players vying for dominance. It is expected that Wayfinder's token issuance may be a game changer.

Tokens to watch are as follows:

GRIFFAIN, ANON, GRIFT, NEUR

(5) Autonomous Trading Agents

This narrative is still in its early stages but has huge potential. Multiple competitors have emerged in this field, and each agent is working hard to create huge returns.

Tokens to watch are as follows:

ASYM, PPCOIN, GEKKO, TONY

(6) Framework

Popular framework tokens enhance agents by providing open source solutions. AI16Z/Eliza is the largest open source framework, but there are other models.

The main tokens are as follows:

AI16Z / ELIZA, GAME (Virtuals), ARC (Rig)

（7）Music

AI agents are entering the music field by releasing albums or supporting music creation. Zerebro is far ahead with an excellent album, and now more and more agents are collaborating with world-class DJs across fields to enter this market segment.

The main tokens are:

ZEREBRO, MUSIC, BEATS

(8) 3D Model

Ava is undoubtedly the leader in the field of 3D modeling. Holoworld AI has been working with various teams to develop and deploy 3D models across different frameworks and ecosystems.

AVA is a token that needs attention.

(9) AIDOL

This trend started when Luna became an AI idol on TikTok and Twitter. While the initial hype has faded, this niche has laid the foundation for agents to provide more practical services. Luna is still the most relevant AIDOL, she now has more personality and can do more things.

The main tokens are as follows:

LUNA, ELIZA, MOE

(10) AI Meme Coins

These meme coins are either issued by AI agents or are related to AI.

The mainstream tokens are:

GOAT, FARTCOIN, ACT

(11) Video/Film Photography

This is an emerging industry, and Kween is in the lead in producing high-quality films, although it is not clear whether they are agent-driven. Sandy is launching the first AI video agent framework, and its potential has not yet been fully realized.

Tokens worth noting are:

KWEEN, SANDY

(12) Data

In the field of artificial intelligence, data is the digital golden key to agent development and performance. Cookie is in the lead in providing data to humans and AI agents.

The main tokens are:

COOKIE, NOMAI

(13) AI Application Store

This category focuses on useful AI application ecosystems, including GenAI tools, games, and productivity enhancement tools. Alchemist is currently the top ecosystem, while Myshell focuses on image generation and waifu simulator games, although its tokens have not yet been released.

The main token in this field is ALCH.

（14）NSFW Agents

This is an emerging market segment where agents play the role of spicy influencers, attracting users around the clock. Lush, Nectar and Oh are the biggest competitors, but currently there is only one token, Lush.

Tokens to watch: LUSH

(15) TEE/DeAI Infrastructure

This narrative enables fully autonomous agents to resist human interference, such as hacking or rug pulling.

The main tokens are:

FAI, PHALA, SPORE

(16) Development-centric tools

Key tools for AI security, code analysis, and utility are critical to the growth of this industry. Soleng is my personal favorite because it can help non-technical friends on Crypto Twitter analyze code/github directories.

Tokens to watch include:

SOLENG, H4CK, CERTAI, JAIL

（17） Robotics/Embedded AI

This is an exciting and still developing field. OpenAI’s work in embedded AI may attract more attention this year.

Main Token: SAM

(18) Other Projects

There are many more categories that I have not covered. The trend of proxy fragmentation has gotten out of control. My personal view on investment is to focus on the narratives that attract the most attention and predict that future narratives will also attract attention.

The main narratives I am watching that will continue to gain traction are:

• DeFAI

• Autonomous Trading Agents

• InvestmentDAO

• Agent Virtual Worlds

A few other narratives I am bullish on as I expect them to gain more attention as we head into Q1/Q2 of the year are:

• NSFW Agents

• TEEs and other DeAI infrastructure (opML, zkML, POSP, etc.) 3. Conclusion The agency fragmentation problem highlights that this rapidly evolving space is full of complexity and opportunity. Rather than jumping on all the trends, builders and investors should focus on areas with potential for consolidation and long-term growth. For builders, the focus should be on creating scalable, differentiated products that meet clear user needs. For investors, backing projects with strong traction and positioned for high-potential narratives will be key to navigating the challenges of fragmentation. The next wave of innovation will come from projects that simplify the chaos and create ecosystems that bring together liquidity, attention, and value.