Real Vision’s chief digital assets analyst Jamie Coutts says that a nascent but soaring crypto sector could continue its upward trend for a few more months.

Coutts tells his 32,100 followers on the social media platform X that he thinks crypto artificial intelligence (AI) agents will continue to perform well in the coming months.

Crypto AI agents are protocols built to autonomously perform tasks on behalf of users such as interacting with blockchains and decentralized finance (DeFi) platforms, trading and managing portfolios.

Says Coutts,

“The last big crypto hype cycle was from November 2020 to May 2021, around six months. Subsectors like DeFi, NFTs (non-fungible tokens) around six-12 months.

Interest in AI agents in crypto took off in November 2024. Based on history, this trend is expected to last at least another four months, but probably longer.

AI agents are not like the others – they unlock potential for every established and new use case.”

The Real Vision analyst, however, says that crypto AI agents could face a severe correction after reaching the cycle top.

“There will be many scams (tread carefully/position size), and as with every hype cycle, the dump will be massive, but I suspect this move still has a way to go.”

According to the cryptocurrency data aggregator CoinGecko, some of the AI-focused crypto projects that rank among the top 100 digital assets by market cap include Artificial Superintelligence Alliance (FET), Virtuals Protocol (VIRTUAL) and ai16z (AI16Z).

Artificial Superintelligence Alliance is a me ging of various decentralized AI platforms whose goal is to speed up the advancement of decentralized Artificial General Intelligence (AGI) and Artificial Superintelligence (ASI).

Virtuals Protocol is a platform that aims to enable the co-ownership of AI agents.

Meanwhile, the ai16z crypto project is designed to leverage AI-driven insights to direct investments in blockchain projects.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on X, Facebook and Telegram

Surf The Daily Hodl Mix

&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any losses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

Steem Dollars, the stablecoin native to the Steem blockchain, has seen a remarkable price surge of over 106%, drawing fresh attention to the decentralized content and rewards platform.

Originally created in 2016 by blockchain entrepreneur Ned Scott and BitShares founder Dan Larimer, Steem Dollars (SBD) were designed to provide stability in the volatile world of cryptocurrency while powering a unique ecosystem of social media and content creation.

Its market cap currently hovers just above $47.5 million.

The coin’s recent rally highlights renewed interest in the Steem ecosystem, where Steem Dollars play a central role. Pegged to the U.S. dollar, the coin offers a relatively stable cryptocurrency option — integral to the platform’s reward system.

Additionally, Steem – like most cryptocurrencies – can also be used to make digital peer-to-peer payments.

Users earn SBD for publishing and curating content on platforms like Steemit, a New York-based startup that touts itself as a decentralized alternative to traditional social media networks.

Why Steem Dollars matter

SBD provides liquidity for transactions within the Steem blockchain and can be used to earn interest as part of a decentralized savings account. It is also convertible to other cryptocurrencies or fiat.

Additionally, Steem Dollars can be traded for STEEM tokens or Steem Power, the latter increasing influence and voting weight on the platform.

The sharp price increase, however, raises questions about its stability. While the token is intended to maintain a value close to 1 USD, its market-driven price has occasionally deviated from this peg.

The current surge might reflect speculative trading rather than organic growth in the ecosystem, but it nonetheless underscores the enduring relevance of Steem Dollars in the blockchain space.

Looking ahead

As SBD continues to climb, analysts and community members will be watching closely to see if this momentum translates into lasting growth for the Steem ecosystem.

Whether the surge is a fleeting speculative event or the start of a broader renaissance, one thing is clear: Steem Dollars are once again making waves in the cryptocurrency world.

Several platforms integrate stablecoins into reward ecosystems to incentivize user participation and provide stability. Examples include Hive Dollar on the Hive blockchain, offering rewards for content creators, and DAI from MakerDAO, widely used in DeFi for staking and liquidity rewards.

Binance USD (BUSD) and USDC are commonly utilized in platforms like PancakeSwap and PoolTogether for similar purposes. Curve Finance employs stablecoins like DAI and USDT in liquidity pools, while sUSD from Synthetix powers synthetic asset trading and staking rewards.

Social media platforms like Roll and Rally also incorporate stablecoins to reward creators. These ecosystems highlight the versatility of stablecoins in reducing volatility and fostering user engagement.

Three prominent blockchain advocacy organizations filed a lawsuit challenging the Internal Revenue Service’s new broker reporting requirements.

The organizations argue that the rules could severely impact the U.S. digital asset sector, particularly decentralized finance (DeFi).

The Blockchain Association, DeFi Education Fund, and Texas Blockchain Council jointly filed the legal challenge in the U.S. District Court for the Northern District of Texas.

They contended that the IRS and Treasury Department’s final “broker” rulemaking exceeds their authority.

The lawsuit specifically targets the rule’s expansion of the “broker” definition to include providers of DeFi trading front-end services, despite these entities not directly facilitating transactions.

The Blockchain Association CEO Kristin Smith called the broker rule “unconstitutional,” alleging that the IRS is violating the Administrative Procedure Act.

According to the Blockchain Association’s Head of Legal, Marisa Coppel, this overreach “would push this entire, burgeoning technology offshore” while infringing on the privacy rights of individuals using decentralized technology.

DeFi Education Fund CEO Miller Whitehouse-Levine expressed strong disappointment in the timing and scope of the regulation. Miller called it “midnight rulemaking” that threatens financial innovation.

The organization emphasized DeFi’s potential to make financial services more accessible, efficient, and consumer-focused.

Texas Blockchain Council President Lee Bratcher highlighted the practical impossibility of compliance. He stated that many actors in the decentralized ecosystem simply cannot access the information now required by the IRS.

“This regulatory overreach risks driving critical development overseas, threatening US competitiveness in the digital economy,” Bratcher stated.

The legal challenge comes after numerous stakeholders warned during the public comment period about the potential negative impacts on the digital asset industry. Crypto.news had earlier reported that DeFi proponents had promised aggressive action against the IRS policies.