Let’s take a deep look at the DeFAI ecosystem, why DeFAI is the most certain direction this year and the strongest narrative of this bull market, and the key projects you can’t miss.

From DeFi to DeFAI: An inevitable evolution

Do you remember the DeFi craze in 2021? Projects like AAVE, COMP, UNI, MKR, and SNX easily have market capitalizations of billions of dollars. At that time, everyone was shouting "Let finance be open to everyone" and rushed into this trend.

But the reality is very bleak: The early DeFi ecosystem had a fatal problem - the user experience was terrible and the operation threshold was extremely high. Those dApps had almost no actual income, and the governance tokens were only slightly better than air coins.

Today’s DeFAI has learned a bitter lesson, and its product maturity is completely different:

1. First have the product and then issue the coin: no longer just draw a rosy picture and then collect the money

2. Real money returns: Token holders can get real benefits

3. Practicality: Tokens are no longer just voting tools, but keys to unlock core functions

4. Valuation is more down-to-earth: Ordinary people can also reap the benefits of rising prices, instead of being ripped off by VCs

DeFAI: The Savior of DeFi

What is the biggest pain point of DeFi? It’s too complicated and too unfriendly.

Anyone who has used DeFi knows that every operation is like sending you back to the college entrance examination retraining class:

- Install a Web3 plugin wallet first

- Manually switch between chains

-Pay incomprehensible gas fees

- Approve smart contracts and authorizations that you don’t understand

- Each transaction must be signed manually

The complexity of this experience prevents DeFi from ever truly gaining mass popularity.

The core value of DeFAI is to use AI to eliminate all these tedious steps, just like how search engines completely changed the way we surf the Internet.

Imagine this: you don’t need to remember URLs or understand blockchain. You only need to tell AI “I want to short ETH” or “I want to exchange USDT for BTC” or “help me find a stablecoin staking project with an annualized return of 5%”. You don’t need to learn any public chains/platforms/wallets/gas. You can get it done in one conversation. This is the real future.

DeFAI Panorama: Five Core Ecosystem Sectors

1. Abstraction Layers

ChatGPT has proven how cool a simple conversational interface can be. The DeFAI abstraction layer brings this experience to the chain, allowing you to complete complex operations in a chat format.

Projects worth paying attention to: $NEUR, $GRIFFAIN, $PROMPT, $BNKR, $M, $CGPT, $SLATE, $BUZZ, $GRIFT, $HEYELSAAI, $PPCOIN

2. AI Trading Facilitators

Trading is a rigid demand in the crypto market. AI trading tools can help you discover arbitrage opportunities that others cannot see, improve your winning rate, and increase your capital efficiency.

Projects worth paying attention to: $ANON, $CDX, $ALMAN, $PPCOIN, $GATSBY, $BERRY, $AXAL, $BRAIN, $XYZ, $AIX9, $PAAL

3. Autonomous Agents

Here comes the more ruthless one: Why not just let AI manage your assets for you? From market analysis to transaction execution, there is no need for human intervention. Making money while lying down is the ultimate dream.

Projects worth paying attention to: $FUNGI, $MANEKI, $BRAIN, $TONY, $RNDM, $AIXBT, $VLV, $KUDAI

4. Agent Frameworks

This is definitely the most explosive sector in DeFAI, and the next trillion-dollar market is hidden here. In the next five years, on-chain activities will be increasingly performed by AI agents rather than humans.

Projects worth paying attention to: $GAME, $AI16Z, $OLAS, $LAY, $SNAI, $HYB

5. DeFAI Infrastructure

Infrastructure Without a strong infrastructure, everything is a castle in the air. DeFAI needs reliable and professional data sources, blockchain optimized for AI, decentralized AI development tools/platforms, and even funding and incubation.

Items worth paying attention to: $MODE, $ALLO, $TAO, $COOKIE, $HINT

DeFAI market space: a huge feast of wealth

The total market value of DeFi tokens in the last bull market reached $174 billion. The potential of DeFAI will only be greater for a simple reason:

— AI is already everywhere: ordinary people are already used to AI, and there is no need to educate the market

— The entry barrier has been greatly reduced: it is much easier to buy coins now than in 2020-21 through the compliant channels.

— Liquidity is overflowing: the market value of stablecoins has reached a new high, the United States has passed the genius stablecoin bill, and Hong Kong's stablecoin is also being proposed, and the ecological funds are sufficient.

— User base surges: Since the last bull run, the crypto community has attracted millions of new investors. The total market value of the DeFAI sector is only a few billion dollars, which is really a bargain. With the core pain points it solves and the market potential, the total market value of DeFAI will easily exceed $10 billion before the end of this cycle.

Final Words

DeFi is too complicated for ordinary people to play with. The mission of DeFAI is to make DeFi as simple as using WeChat Pay. The iPhone moment is just around the corner. This is not just the "biological evolution" of DeFi, but the perfect collision of the two major technological waves of blockchain and AI, and the main theme of the Internet in the next decade.

When the tide comes, all ships will eventually sail away. It is not too late to board DeFAI now, and everything has just begun.