We’re calling it now — DeFAI will be the most performant narrative in this crypto cycle.
If you’re not learning it, you’re gonna regret it.
Since launching in January 2025, DeFAI has already:
Hit a $4B+ valuation
Dominated mindshare
Outperformed most sectors in price action
But why DeFAI above everything else? Why not RWAs? DEXs? Memecoins?
Let me show you why this narrative has the highest upside — and which projects to watch.
1. AI Is the Buzzword of Our Era
AI isn’t a side narrative. It is the narrative of the decade.
Everyone’s aware of it. Everyone’s talking about it. And most importantly, it’s creating trillions in real value.
Just look at the dominance of AI firms in the public markets:
And when you zoom in on crypto, the DeFAI sector is exploding in performance:
Meanwhile, look at Nvidia’s return chart. If AI stocks can deliver that, imagine catching the crypto version of it early:
2. Crypto × AI Is the Most Powerful Combo
We’re witnessing the merger of the two most disruptive technologies of our era:
Decentralization
Artificial Intelligence
And the synergy is unreal.
Why this combo wins:
AI agents are way more powerful in crypto than in Web2.
DeFi + AI = Self-operating, self-optimizing portfolios.
Decentralized LLMs and private on-chain data = massive value unlock.
Still think this is hype? Look at the user growth curve:
3. You’re Still Early to DeFAI
DeFAI’s market cap is still under $1B. That’s not a typo.
Compare that to even one traditional AI stock like Nvidia, which alone is worth $2.5 trillion.
This is the part of the cycle where conviction wins. Look at where DeFAI sits relative to everything else:
You are early. But not for long.
4. Other Narratives? Mostly Cooked.
Memecoins: Retail exit liquidity. The top is probably in.
Traditional DeFi: Weak ETH sentiment dragging the whole sector.
DeFAI has the cleanest growth runway — and it’s got the most powerful macro tailwinds.
Top DeFAI Projects to Watch
These aren’t just names — these are the blue chips of the next wave. Grouped by sector for alpha clarity:
AI Trading Facilitators
@HeyAnonai — Real-time edge with actual users and trader traction
@Cod3xOrg — Custom build-your-own agent architecture
@Almanak__ — Institutional-grade quant trading deployment
AI-Powered Apps
@SharpeLabs — Crypto super app with AI at its core
@GoHodl — Launching soon. SocialFi + trading with AI-native UX
DeFi Abstractions
@orbitcryptoai — Access 117 chains via one interface
@bankrbot — Launch tokens by tagging it on X
@Cortex_Protocol — Just type “buy $XYZ” and it executes
AI Agent Frameworks
@virtuals_io — 17k+ deployed agents and winning the no-code game
@elizaOS — Open-source competitor to Virtuals with serious traction
You don’t want to be the investor who missed AI x Crypto because you “didn’t get it.”
This is the NVIDIA moment for crypto.
Catch it. Or chase it.
-Nick
Founder, CryptoNuggs