The explosion of encryption AI in 2024, bright prospects before 2025

In 2024, the encryption AI field experienced explosive growth. From just a handful of projects at the beginning of the year, it developed into an independent track in the encryption market that could not be ignored by the end of the year. On December 7th, the total market value of encryption AI sector assets exceeded $70 billion, accounting for a maximum of 2% of the entire encryption market, with an annual growth rate of 400%. The number of projects also saw explosive growth, surpassing 600.

Important events within the year include: the breakthrough in video technology by Wensheng at the beginning of the year triggering infrastructure speculation; the AI annual conference promoting attention to decentralized GPUs; the investment boom in the middle of the year aiding technological research and applications; and the explosion of the AI Agent concept at the end of the year. The total market value of assets shows two peaks: in February-March and after October. In the third quarter, venture capital invested over $213 million in AI projects, a month-on-month increase of 250% and a year-on-year increase of 340%.

The encryption AI products are mainly divided into "AI for Crypto" and "Crypto for AI", the latter of which is considered to have broader prospects. Based on the three key elements of AI large model development (data, computing power, algorithms), an encryption AI ecosystem has been formed. The data layer covers collection, storage, and processing; the computing power layer has seen the emergence of decentralized GPU computing networks; and the algorithm model layer provides diversified AI model services.

Looking ahead to 2025, many institutions are optimistic about the development of the encryption and AI markets, particularly regarding AI Agent-related products. The external AI field continues to gain momentum, with large tech companies planning to launch new AI products, which is expected to reignite the market. On the policy front, the appointment of the new White House official for artificial intelligence and cryptocurrency affairs is expected to promote the development of the integration between encryption and AI. Overall, the prospects for the development of the encryption AI field in 2025 are promising, with expectations of continued rapid growth.