Encryption AI Field 2024 Review and 2025 Outlook

In 2024, the encryption AI field has ushered in an unprecedented explosive growth. From only a few projects at the beginning of the year, it has now become an independent track in the encryption market that cannot be ignored, and the speed of development of encryption AI is remarkable.

According to the latest data, on December 7th, the total market capitalization of the encryption AI sector surpassed 70 billion USD, accounting for the highest proportion of 2% in the entire encryption market, with an annual growth rate of up to 400%. At the same time, the number of encryption AI projects has also shown explosive growth, currently exceeding 600, covering various categories of products including decentralized AI infrastructure, AI Dapps, and more.

Looking back at 2024, the development of encryption AI has undergone several significant changes. At the beginning of the year, breakthroughs in text-to-video technology ignited a hype around encryption AI infrastructure. Subsequently, the development of AI chips brought decentralized GPUs into the spotlight of market attention. By mid-year, the encryption AI sector experienced an investment boom, with numerous encryption projects receiving funding support, accelerating the research and application of technology. By the end of the year, the explosion of the AI Agent concept pushed the narrative of encryption AI to a new high.

Although the overall encryption market has retreated, the total market capitalization of the entire encryption market reached $3.4 trillion on December 23, with the market capitalization of encryption AI assets still accounting for nearly 1.4% of the entire market, further proving its future market growth potential.

Currently, the encryption AI products on the market can mainly be divided into two forms: "AI for Crypto" and "Crypto for AI". The former focuses on applying AI technology to encryption products, such as AI code optimization and security audits, on-chain yield strategies, and so on. The latter empowers the AI industry with encryption technology, such as solving data privacy and security issues, aggregating computing power resources, etc. The industry generally believes that "Crypto for AI" shows broader prospects and potential in terms of market application.

Based on the three core elements "data, computing power, and algorithms" that drive the development of large AI models, the encryption AI ecosystem has initially formed. At the data level, the project encompasses data collection, storage, and processing; at the computing power level, a decentralized GPU computing network has emerged; at the algorithm model level, a decentralized AI algorithm network is in the process of formation.

Looking ahead to 2025, multiple institutions are optimistic about the development of the encryption and AI markets, particularly highlighting that AI Agent-related products will experience explosive growth. The continuous warming of the external AI field, such as a certain AI company completing large-scale financing, will further drive the prosperity of the encryption AI market. In addition, large technology companies plan to launch new AI Agent products, which are expected to ignite the AI market once again.

At the policy level, the new U.S. government may pay more attention to and support the integration of encryption and AI. These factors will bring new opportunities and challenges for the development of the encryption AI track in 2025.