Decentralized technology saw notable advancements in the third quarter of 2024, with artificial intelligence (AI) playing a key role in driving growth across blockchain applications. The launch of Theoriq’s Testnet introduced a new era of AI-driven decentralized agents, while AI-related decentralized applications (DApps) surged in popularity, contributing to a record 17.2 million daily active wallets, according to a recent DappRadar report. However, not all sectors fared as well—while AI DApps gained traction, decentralized finance (DeFi) and non-fungible tokens (NFTs) experienced declines in activity.

Surge in AI-Powered DApps Fuels Blockchain Growth in Q3 2024

The third quarter of 2024 witnessed a major leap in decentralized application (DApp) activity, largely driven by the rise of artificial intelligence (AI) applications, according to a recent report by DappRadar. Blockchain platforms saw record-breaking engagement, with daily unique active wallets (UAWs) reaching an unprecedented 17.2 million—an impressive 70% increase compared to the previous quarter. AI-related DApps were at the forefront of this surge, marking a 71% rise in activity, demonstrating the growing synergy between AI and blockchain technologies.

The rapid adoption of AI applications within the decentralized ecosystem is a significant factor behind the explosive growth in UAWs. AI-related DApps alone accounted for nearly 4.3 million daily UAWs in the third quarter, showcasing the immense potential of combining artificial intelligence with blockchain technology.

Key players driving this growth include the Data Intelligence Network (DIN) and Alaya AI, both of which have shown remarkable performance over the past few months. DIN, a modular data pre-processing layer launched in April 2024, has rapidly gained traction, reaching 1 million daily UAWs by the end of the third quarter. The platform’s unique approach to handling large-scale data processing with blockchain technology has made it a vital tool for businesses and developers leveraging decentralized networks for AI applications.

Similarly, Alaya AI, a data collection and labeling platform, has maintained steady user engagement. Over the last 90 days, Alaya has consistently seen activity from 100,000 unique wallets, cementing its position as a leading platform for AI-powered data services within the decentralized space.

While AI DApps continued to gain momentum, decentralized finance (DeFi) applications experienced a significant downturn during the same period. According to the DappRadar report, DeFi’s total value locked (TVL) dropped from $168 billion to $160 billion—a 5% decline quarter-over-quarter. Ethereum, the largest DeFi network by market share, saw a more dramatic 20% reduction in value locked, falling to $95 billion.

Several factors contributed to the DeFi sector’s decline, including increased regulatory scrutiny and shifting market interest toward newer layer-1 blockchains. Despite Ethereum’s struggle, other layer-1 networks such as Sui and Aptos emerged as strong performers, each seeing a 78% increase in TVL. Sui and Aptos now have $1.6 billion and $1.3 billion in value locked, respectively, reflecting investor confidence in newer, faster blockchains designed to scale for mass adoption.

NFT Market Faces Major Downturn

The non-fungible token (NFT) sector, which had been a bright spot in previous quarters, faced a sharp contraction in Q3 2024. Trading volumes plummeted by 60%, falling from $4 billion to $1.6 billion. NFT sales also took a hit, dropping by 23% to 11.5 million during the quarter.

Much of the decline can be attributed to waning interest in certain platforms and the end of incentives that had previously fueled trading. Blur, the leading NFT marketplace by trading volume in the second quarter, saw a staggering 78% decrease as its airdrop incentives concluded, pulling users away from the platform.

On the contrary, OpenSea experienced a resurgence, reclaiming its dominant position in the market. OpenSea’s trading volume rebounded to $570 million, and the platform saw increases across key metrics, including the number of sales and active traders. Competitors like Magic Eden, which had thrived on the popularity of Bitcoin Ordinals earlier in the year, struggled after cutting royalty incentives, which in turn drove creators and traders back to OpenSea.

The third quarter of 2024 has demonstrated that while the decentralized finance and NFT sectors may face challenges, the future of blockchain technology increasingly lies in its intersection with artificial intelligence. AI-powered DApps are not only increasing user engagement but are also pushing the boundaries of what blockchain platforms can achieve. The success of platforms like DIN and Alaya AI reflects this shift toward more specialized, intelligent applications that cater to a wide range of industries, from data processing to autonomous decision-making.

Theoriq Launches Testnet: Paving the Way for Decentralized AI Agents in Web3

On Aug. 8, Theoriq, a leading decentralized artificial intelligence (AI) and Web3 firm, officially launched its Testnet, marking a groundbreaking moment for the intersection of blockchain and AI. This launch represents the first blockchain-based network of its kind designed specifically for autonomous AI agents—systems capable of executing complex tasks in a decentralized environment. The development promises to accelerate the evolution of AI’s role within the decentralized Web3 ecosystem and redefine the capabilities of blockchain technology.

Theoriq’s announcement of its Testnet brings to life a vision where AI agents operate autonomously within a decentralized framework. These AI agents, known as “Agents,” function as independent entities that are designed to perform specific tasks across a variety of domains. What sets Theoriq apart is its innovative approach to using blockchain technology to orchestrate these AI agents, allowing them to work together in “Collectives” to achieve complex, high-level goals.

In this blockchain-based ecosystem, Agents can autonomously plan, access data, utilize tools, make decisions, and interact with the real world to carry out specific functions. The Agents are designed to operate as a collective intelligence, whereby multiple agents combine their unique capabilities to complete tasks that a singular, general-purpose AI agent would struggle to accomplish on its own.

Ron Bodkin, CEO and Co-founder of Theoriq, explained, “We strongly believe that specialized Agents collaborating in teams, known as Collectives, to tackle increasingly more complex tasks will outperform general-purpose monolithic Agents. These AI Agents can specialize in various tasks or tools such as analyzing social data, querying and accessing trading data, code generation, and image creation, allowing them to Collectively work off each other’s outputs towards a unified goal.”

In a significant milestone for the firm, Theoriq was accepted into the prestigious Google Cloud Startup Program on Aug. 19. This partnership grants Theoriq access to Google Cloud services and infrastructure to help power the development and scaling of its protocol. Access to this robust infrastructure is expected to enhance the company’s ability to develop and fine-tune its blockchain-based AI ecosystem, accelerating innovation and offering reliable performance as the project transitions towards its mainnet launch later this year.

The collaboration with Google Cloud also signals confidence in Theoriq’s vision and technological foundation, offering the firm critical support as it pioneers a new age of decentralized AI. The ability to leverage Google Cloud’s advanced computing resources and machine learning tools will further enhance the efficiency and scalability of Theoriq’s AI agents.

The Testnet launch is a critical milestone in Theoriq’s roadmap. It allows the company to refine its Agents and optimize their performance in a real-world, decentralized environment. The goal is to ensure that by the time the mainnet launches later this year, the system will be fully operational and secure.

One of the key features of Theoriq’s network is its decentralized nature, which allows Agents to operate in a peer-to-peer manner without relying on centralized control. This decentralized approach offers numerous benefits, including increased security, enhanced privacy, and greater scalability. As the network grows, the number of Agents participating in it is expected to multiply, each contributing to the system’s overall intelligence and efficiency.

AI Agents: Ushering in the “Agentic Age”

At the core of Theoriq’s innovation is the concept of AI agents acting independently to perform a range of tasks. These Agents are envisioned to bring unprecedented levels of automation to the Web3 ecosystem and beyond. By interacting with smart contractscontrolling assets, and even making micropayments autonomously, Theoriq’s Agents are expected to revolutionize how decentralized systems operate.

For instance, decentralized physical infrastructure networks (DePIN) can use Theoriq’s AI agents to manage and optimize resources in real time. By interacting with smart contracts, the Agents can control and automate processes that would otherwise require human intervention, such as adjusting asset allocations, managing digital resources, or processing micropayments. Bodkin elaborated on this, stating, “With this level of agency, our AI Agents are ready to reshape how we interact with technology. We are starting to enter the Agentic Age.”

The Agentic Age, as envisioned by Bodkin, refers to a future where autonomous AI agents will perform increasingly complex and interconnected tasks across a wide range of industries. By collaborating as collectives, AI agents will work together to solve problems, access diverse datasets, and apply domain-specific expertise to create a more efficient and intelligent system.

Theoriq’s Testnet launch is more than just a technical achievement; it marks the beginning of a new era where AI and blockchain technology converge to create a decentralized and autonomous ecosystem. With the mainnet launch on the horizon and a strong partnership with Google Cloud, Theoriq is poised to be a major player in this emerging space.

As the firm continues to refine its AI agents during the Testnet phase, the possibilities for the future seem limitless. From automating Web3 applications to interacting with decentralized infrastructure, Theoriq’s vision of the “Agentic Age” has the potential to redefine how technology integrates into our daily lives. The company’s innovative use of decentralized AI is not only a technical leap forward but a strategic one, promising to revolutionize the way tasks are performed in the increasingly interconnected digital landscape.