The cryptocurrency market remains extremely volatile, with capital movements trending in ways that require traders to find an edge in the market. The crypto market has reversed sharply over the last ten days following a bullish run from mid-September to early October.
Since the 5th of October, the total crypto market capitalization (excluding stablecoins) recorded an outflow of roughly $233.49 billion, despite rallies in between, suggesting growing selling pressure.
One approach traders are exploring is the use of artificial intelligence (AI). Reports indicate that traders remain skeptical about using AI for trade execution but rely on it for research to improve their trading outcomes.
Crypto traders rely on AI mainly for research
According to a recent MEXC report based on a survey conducted between the 14th and 20th of September, which covered over 3,800 respondents, crypto traders are increasingly relying on AI.
According to the survey report, about 68.9% of respondents confirmed that they use AI in their trading. However, traders mostly use AI before executing trades.
News summaries accounted for the largest share, with 54% of respondents noting that they rely heavily on AI for this purpose. Other notable use cases included analyzing the market, finding opportunities, and explaining concepts, which accounted for 48.6%, 38.0%, and 34.5% of respondents, respectively.
Only a few respondents use AI after trading, representing 8.5% of the group. Before trading, most traders rely on general-purpose AI tools, including ChatGPT and Claude. However, traders also said they prefer in-exchange AI and chat features, with 62.7% indicating this preference.
In an email to AMBCrypto, Vugar Usi Zade, CEO of MEXC, noted that the growing interest in AI has yet to translate into widespread readiness for fully automated trading.
“We see growing user interest in AI, but it is too early to speak of widespread readiness for full autonomy. Even among those who have experimented with automated execution, one in two fears that they might not notice a problem in time to stop it.”
Agent tokens fall despite rising trading volume
Although traders widely use AI agents for crypto trading, investors have yet to show increased interest in AI agent-related tokens.
Market activity shows significant weakness in prices, which have declined roughly 7% in the past day, with market capitalization now valued at $2.368 billion.
At the same time, the volume for these tokens has surged 28.4% to reach $524 million. When prices decline and volume rises, it suggests further weakness in the market.
The performance could be due to a lack of trust in AI agents more broadly, with the report showing a similar trend. Only 13% of respondents, or 482 people, had tried using AI agents in the market. Around 50.1% of respondents expressed interest in AI agents but had not tried using one.
Risk in the market remains a critical concern, with traders who responded to the report confirming that incorrect trades, account security, and technical barriers or complexity have deterred investors from allocating funds.
Most investors expressed interest in using automation; they said they would allocate no more than 20% of their account funds to it, even with risk limits in place.
Final Summary
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Crypto traders primarily use artificial intelligence for research, with 68.9% of respondents using it in their trading, mostly before trade execution.
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AI Agent tokens fell 7% in 24 hours despite a 28.4% rise in trading volume, while trust and security concerns limit adoption.
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