Is Solana’s AI16z Poised to Disrupt the Virtual Protocol?
At present, Virtual Protocol on Base stands as the frontrunner in the realm of AI agents, boasting a market capitalization of $3 billion. Its rapid ascent to unicorn status can be attributed to its robust framework that connects VIRTUAL with new agents, thus generating a consistent demand.
Nevertheless, Solana’s AI16z [AI16Z] is gearing up to rival Virtual Protocol for the top spot. AI16Z, the investment DAO backing Eliza, an open-source agent framework similar to Virtual Protocol, poses a direct challenge.
In contrast to VIRTUAL, AI16Z has yet to attain unicorn status and currently holds a market capitalization of ‘only’ $880 million. As stated by Daniel Cheung, a Partner at crypto VC Syncracy Capital, Eliza’s widespread adoption, evidenced by GitHub trends, could provide AI16Z with a competitive advantage.
“The most underrated aspect of AI16z is its position as the #2 GitHub repository globally and the leading open-source framework for AI agents.”
AI Agents Battle: AI16Z vs Virtual Protocol
In addition to adoption rates, the AI16Z team has revamped its tokenomics to link new agents with AI16Z, much like Virtual Protocol’s model. This strategic move could further enhance the value of its native token.
A significant catalyst could be the listing on top-tier exchanges.
In response to the forthcoming updates, market analyst Kyle echoed Cheung’s optimistic sentiment, declaring,
“The AI16z trade has two phases. The first phase: From 180 million to 1 billion, reflecting the market’s undervaluation of solid fundamentals. The second phase: From 1 billion onwards, driven by tokenomics changes, exchange listings, and its establishment as the premier AI entity, the ‘Layer 1’ of all AI agents.”
If industry experts prove correct and AI16Z achieves Virtual Protocol’s current market cap of $3 billion, investors could witness a threefold increase in gains.
Utilizing the Fibonacci trend tool, the immediate bullish target of $1.5 could yield a 168% profit if AI16Z surpasses $0.5. Should the price climb to $2.3, gains could potentially reach 300%.
However, AI16Z trails behind Fartcoin, Aixbt, and VIRTUAL in mindshare at present, holding a mere 5% share. This indicates that social attention is primarily on Virtual Protocol and other contenders, which could limit AI16Z’s short-term growth potential. Nonetheless, this scenario might shift once the anticipated upgrades are implemented.