Revival in AI Coin Market: How x402 Protocols and Virtuals Ecosystem Fuel the Surge

The Resurgence of Small-Cap Coin Amidst the AI Coin Upsurge

Over the past couple of months, the small-cap coin has been experiencing some turbulence, particularly after the launch of the TRUMP memecoin in January. However, recently, the artificial intelligence (AI) coin space is welcoming a rejuvenation led by the rise of the Virtuals ecosystem and x402 protocols, presenting a beacon of hope for this cryptocurrency niche.

Virtuals Ecosystem: Rising from the Ashes

The Virtuals ecosystem, an AI-powered platform, experienced a significant 84% increase in value last week. In addition to that, some of the leading coins in its ecosystem, TIBBIR and AIXBT, also marked a growth rate of 27% and 54% respectively. This growth spurt was triggered by the renowned cryptocurrency exchange, Coinbase, providing its users with access to all AI agent tokens hailing from the Virtuals base as of October 24.

Unraveling the AI Agent Craze: A High Point for Virtuals

Reminiscing back to the AI agent boom of 2024, the Virtuals token surged a monumental 10,000% from October 2024 to January 2025, spiking from a mere $0.04 to hit $5. This marked an all-time high in Base activity driven by Virtuals. However, similar to trends seen across the altcoin market, the token value subsequently decreased and currently stands at $1.46.

The Dawn of x402 Protocols and their Impact

Adding fuel to the fire is the emergence of x402 protocols. These revolutionary frameworks are stimulating the AI agent payment systems and enhancing the usability of AI-enabled finance. Spearheading this revolution is Coinbase’s very own x402, along with PayAI, whose tokens witnessed an astounding 2000% growth in the previous month. Cumulative transactions via x402 protocols are also skyrocketing, arriving at a staggering 1.51 million today, ascending from a mere 60,000 at the start of October – the data being corroborated by Dune Analytics.

Risk Factors and the Rise of Vintage AI Tokens

Despite the promising growth, risks persist, especially concerning the vintage AI agent tokens from 2024. Traders are banking on increased interest for projects adaptable to the new x402 meta, leading to a resurgence in the value of these tokens. DeFi0xJeff from X, an erstwhile researcher at The Spartan Group, shared his thesis focusing on x402. He asserted that the AI agent narrative is making a comeback, as ecosystem leaders gradually recover their losses. Simultaneously, smaller AI agent platforms are observing a 200-1000%+ rebound in the last week.

The Speculative Run of x402 Memecoin

DeFi0xJeff warned that similar to previous spikes, the present upturn is primarily powered by speculation within the x402 memecoin trenches. Not all agent platforms will sustain their profit margins. He warned only those close to or at the commercialization stage with well-rounded products are likely to withstand the volatility. As the dust starts to settle on the current memecoin boom, all eyes are pinned on the AI coin space with budding anticipation. Whether this enthusiasm will result in a sustained growth trend or fizzle out as yet another transient surge remains to be seen.