In the crypto industry, behind every bull market boom, there is a new tokenization narrative. Whether it is Bitcoin’s “digital gold” vision, Ethereum’s smart contract applications, or the rise of NFT and DeFi, these narratives continue to drive the market forward.
Analysts at StarEx Exchange believe that 2024 is the first year of AI tokenization, which has greater room for imagination. The technologies of NFT and RWA (real-world assets) are relatively mature and require further expansion of ecological application scenarios.
The emergence of Bitcoin provided us with the first decentralized, secure and transparent ledger system, paving the way for the digitization of assets. In 2015, the advent of Ethereum further upgraded tokenization, based on smart contracts, so that any asset can be programmable - whether it is real estate, art or financial instruments.
The success of Ethereum is a strong proof of the potential of tokenization. As of 2024, ETH's fully diluted valuation (FDV) has reached $470 billion.
NFT introduced the concept of tokenization into the art field. In 2017, the CryptoPunks and CryptoKitties projects injected new vitality into the market. By 2021, NFT has gradually become synonymous with digital art and collectibles, with a transaction volume of up to $13 billion that year. NFT has redefined the circulation and value expression of artworks, giving creators and collectors more possibilities.
The tokenization of income has injected new impetus into decentralized finance (DeFi). In 2021, Pendle took the lead in proposing the idea of tokenizing future income, providing more liquidity and flexibility to DeFi by creating a trading market for fixed and variable income. In 2023, Pendle further achieved rapid growth through the launch of Liquid Staking Tokens (LSTs) and the Points Market. This model not only optimizes income management, but also provides more opportunities for users and the market to participate.
StarEx exchange analysts believe that there are still some areas of tokenization worth looking forward to in the future, among which the performance of AI is even more exciting.
The tokenization of AI agents is one of the most promising tokenization innovations in 2024. The Virtuals platform has launched a market dedicated to the creation and tokenization of AI agents, through which developers can raise funds for AI projects while retaining project equity. The integration of AI and tokenization gives the market richer narrative imagination and expands the boundaries of technology application.
The tokenization of AI applications is an extension of the tokenization of AI agents. Tools such as Replit and the agent ecosystem make personalized software development more realistic. Users can not only enjoy personalized services, but also own part of the revenue rights of these applications. Through tokenization, developers have access to broader financial support, and investors can directly participate in the future profit distribution of AI innovation projects.
In addition, as the importance of data increases, data tokenization is gradually becoming a new narrative hotspot. Projects such as Vana are exploring the application model of Data Decentralized Autonomous Organizations (DataDAOs) and Data Liquidity Pools (DLPs), where users can earn rewards by contributing personal data while retaining ownership. This model aims to transform data into liquid assets and redefine the value of data. In the future digital economy, data tokenization is expected to become one of the core driving forces.
StarEx Exchange analysts believe that the core driving force of each bull market is the deep integration of technology and business models. Pioneers often quickly gain market recognition with innovative tokenization narratives, and technological breakthroughs and resource aggregation create opportunities for exponential growth. Tokenization is not only a technological innovation, but also a tool to reshape economic models and resource allocation mechanisms. The deep integration of data economy and data ownership; the further monetization of user behavior and attention value; and the new business model of personalized AI services all have great opportunities.
The new narrative of 2024 allows us to see the infinite possibilities of tokenization again. Whether it is the cultural extension of NFT or the technological imagination of AI, tokenization has become the main theme behind every bull market and will continue to reshape the face of the economy and society in the future.
