High Failure Rate of AI Agents in Web3 isn’t Unexpected – Experts
Experts believe the high failure rates of AI agents within Web3 create a perfect scenario for bringing meaningful innovation and robust solutions forward.
Web3 experts believe that many artificial intelligence agents and their tokens have failed due to a lack of practical application and intrinsic value. The experts explained that this process is natural in purifying the Web3 ecosystem from weaker projects.
Hence, they’re not surprised that many AI agents are still failing. Many AI agent projects have been unsustainable without tangible use cases and real-world benefits.
According to a study by Phut Crypto, 90% of the AI agent projects launched within the first two weeks of 2025 are already dead. Furthermore, 75% of token investors linked to such agents have incurred losses. According to the data, these tokens last only 17 days on average.
Meanwhile, Michael Heinrich, managing director at 0G Labs, explained that such attrition rates reflect a self-selecting process that ensures only the most valuable projects remain. He added that this is beneficial for long-term ecosystem stability.
Heinrich believes these events should encourage entrepreneurs and make them realize there is a significant demand for AI agents in Web3 that the existing solutions cannot meet.
Hype vs. Substance Among Web3 Projects
Lingling Jiang, a top-level executive at DWF Labs, said there is no shortcut to longevity or credibility, adding that the best projects emerge from a well-planned strategy, hard work, and partnering with responsible counterparts.
Although the current failure rate is unappealing, projections for 2025 indicate a growing interest in AI agents. Renç Korzay, CEO of Giza, recommends that investors seek projects with practical implementation and ignore marketing noise, including flashy whitepapers and tokenomics.
Research and Tools: The Missing Pieces to Web3 Success?
Korzay further suggests digging deeper into a project’s viability using analytics platforms such as Token Terminal or Dune Analytics. Jiang emphasized the importance of remaining updated with the latest happenings and uncovering meaningful insights from misleading narratives.
Fraction AI founder Shashank Yadav says stronger investor protection should be in place. He said mechanisms such as smart contract lockups with gradual vesting can help.
Yadav also suggested using zero-knowledge proofs for execution transparency. However, community involvement makes or breaks any platform.
User feedback leads to project upgrades and ensures that AI agents solve real-world problems. Experts agree that an engaged user community is a primary ingredient for a project’s longevity in Web3.
The community can provide feedback on issues before tokens die and recommendations for improving AI agents.
Top Web3 Company Completes Fundraise
Analog, a leading Web3 company, has announced the completion of a $5 million fundraising event, bringing. The fundraising was supported by leading venture capital (VC) investors such as Tribe Capital, Wintermute, and Mask Network.
The funds will power Analog’s vision of seamless cross-chain integration and open access to decentralized data.
Driving Progress with Strategic Investment
Initially incubated by Binance, Analog has received huge support from key investors such as Foresight Ventures and Contango Digital. Valued at $300 million after the latest fundraiser, Analog intends to continue working on its General Message Passing (GMP) protocol for the seamless development of omni-chain decentralized apps (dapps) native to multiple blockchain systems.
After achieving compatibility for Ethereum Virtual Machine (EVM) and Polkadot, Analog will soon complete the same with the Solana and TON blockchains. When achieved, it will become easier for developers looking to build omni-chain solutions and make Web3 much easier for users.
Innovating with Cross-Chain Solutions
Analog’s capabilities are demonstrated by projects such as Zenswap, a decentralized exchange built on the company’s proprietary technology. More than 50 projects operate on the firm’s proprietary protocol, while the testnet has already reached over 345,000 users.
Analog’s GMP protocol solves pressing challenges like limited cross-chain functionality. It also helps developers create interoperable dapps for NFT and omni-chain trading without sacrificing efficiency or robust security.
The Web3 firm will also aim to promote DeFi solutions to a wider audience and boost broader Web3 adoption.
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