DeFAI research from Binance
The Binance research team regularly publishes analytical materials on the state of the industry. Today, it released a report on DeFAI, which it calls the future of on-chain finance:
"The integration of artificial intelligence into cryptocurrencies is rapidly shifting from novelty to infrastructure. What began as experiments is turning into a deeper, systemic transformation of how decentralized finance (DeFi) is built, used, and scaled," the report begins.
DeFAI—that is, the combination of AI and decentralized finance—has been gaining popularity for several months. However, it has not yet taken a leading position in the artificial intelligence industry.
Binance Research analyzed the market capitalization of various AI sub-sectors and found that DeFAI accounts for only 10%. Currently, AI meme coins are significantly more noticeable.
AI dominance in the cryptocurrency market. Source: Binance Research
Binance is confident that AI agents will be the key to the success of DeFAI in the future. The report highlights four main levels of DeFAI architecture, all of which are related to AI agents. These levels include the agents themselves, frameworks for their development, protocols for creation, and marketplaces for distribution.
What awaits the DeFAI sector
Binance Research also highlighted several potential issues for DeFAI. Two key concerns are ownership and transparency, which are important for the crypto community.
Another potential issue is AI agents and the question of how actively they should participate in decentralized governance. Risks increase as the technology spreads across all related fields.
However, the Binance Research team is confident in the potential of DeFAI. The main advantages are autonomy, modularity, and decentralization. All these qualities can bring significant benefits that outweigh the described risks—provided that reliable security measures and quality standards are implemented.
Overall, the exchange team believes that with proper use, DeFAI technology can shape the future of the cryptocurrency market.