The following is a guest article from Vincent Maliepaard, Marketing Director at IntoTheBlock.Artificial intelligence and blockchain technology have converged to create Web3-based AI Agents—sophisticated models powered by advancements in Large Language Models (LLMs). These agents are transforming digital interactions. Their ability to act semi-autonomously represents a significant leap from simpler automated systems, driving the explosive growth of a tokenized AI agent market exceeding $16 billion in just six months.What is Agentic AI?Agentic AI describes AI agents capable of independent action without constant human direction. Unlike their predecessors limited to routine tasks, today’s LLM-powered agents can reason and strategize, making them increasingly valuable in cryptocurrency markets.The Genesis of Crypto AI AgentsThe concept of AI agents isn’t new, but its widespread adoption is. The Truth Terminal, an AI agent that freely navigated the internet, gained significant traction by promoting a meme-based ideology on social media. This demonstrated the potential for AI agents to autonomously influence and participate in the digital economy.The Truth Terminal’s success opened up numerous possibilities for AI agents in the cryptocurrency world. Their applications are expanding rapidly, from automated trading to sophisticated transaction management.Launchpad for Innovation: Virtuals Agent PlatformVirtuals has become a key platform for launching and integrating AI agents into the cryptoeconomy. It supports the creation of tokenized agents, offering investors ownership and access to unique features.Virtuals hosts two main types of AI agents: informational and conversational.Informational agents gather and process data to improve their decision-making within specific areas like cryptocurrency or gaming. Conversely, conversational agents interact dynamically with users, adapting to changing trends and engaging in diverse activities, from composing music to acting as virtual characters in games.Market Dynamics and Token AnalysisThe market for agent tokens is highly competitive, with few exceeding a $100 million market cap. Informational agents, especially those focusing on crypto analytics like AIXBT, have attracted considerable attention and quickly ammassing over 390k followers on X.Some agents, such as VADER, have gone beyond their informational focus and also manage portfolios where users can deposit assets and allow the agent to make investments in the larger Virtuals ecosystem.The $VIRTUAL tokenThe VIRTUAL token’s remarkable growth is due to its central role in the Virtuals ecosystem. Its economic model benefits from transaction fees between agent tokens and VIRTUAL. A significant portion of these fees are reinvested or used for buybacks, creating a self-sustaining growth cycle. This has placed the majority of Virtual holders in profit consistently in recent months.The weekly fees generated by the ecosystem have been steadily growing, wi