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
DeFAI is the bridge to which we can bring the next million users on-chain. Hey Anon is building this bridge.
Here's how you can use natural language to earn yield on Telegram Open Network (TON)
Integration Spotlight: @ston_fi 🧵
— #Hey Anon (#@HeyAnonai)
8:28 PM • Apr 23, 2025
@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
The final boss for DeFi?
Fiat on-ramping that actually works.CEXs still dominate because moving money on and off-chain is broken.
GoHodl is fixing it — soon you’ll go fiat → @SonicLabs and back without ever touching an exchange.
🧵👇
— #GoHodl (#@GoHodl)
2:00 PM • Apr 4, 2025
@SharpeLabs — Crypto super app with AI at its core
@GoHodl — Launching soon. SocialFi + trading with AI-native UX
DeFi Abstractions
Orbit is the only abstraction layer today that incorporates 200+ different protocols across 100+ different chains.
One year in the making and we're just getting started. Some exciting announcements about new chains and protocols to come.
— #Orbit (#@orbitcryptoai)
8:33 PM • Feb 2, 2025
@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
Autonomous businesses are here.
Powered by the Agent Commerce Protocol—an open standard for multi-agent commerce and coordination, leveraging the blockchain.
Imagine an autonomous hedge fund business composed of information agents, trading agents, TEE-secured treasury
— #Virtuals Protocol (#@virtuals_io)
1:33 PM • Feb 19, 2025
@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