The AI Dispatch #26 - Finding a Balance, The Launchpad Wars and Loomlay
The AI Dispatch #26 - Finding a Balance, The Launchpad Wars and Loomlay — research from Castle Labs.
Another week in the AI realm.
While the market has surged over the past couple of weeks, most AI tokens remain at levels significantly lower than those at the beginning of the year.
This was somewhat expected, given the current state of AI, which is stuck between its initial promises and fairly underwhelming execution.
However, some things appear to be changing.
Or better yet, some things SHOULD change.
Market Overview
We are now comfortably above $12 billion in market cap, which is usually a good sign based on past performance. Every time we've managed to hold the $10 billion resistance, we've eventually blasted up to $14-16 billion.
This time is a bit different than last time, when AI was basically the only sector pumping. This time, we're lagging behind other tokens.
Only a few tokens have been overperforming compared to others.
Here's the top AI agents by mindshare during the past 24h:
In particular, we highlight:
REKT: The project by @rektmando and @osf_rekt is seeing strong demand, now almost at $250m market cap. Their activations and drink releases at the meeting point between NFTs and IRL have proven to be a successful and organic way to build a community.
Since April, REKT has been the best beta for ETH:
$TIBBIR: One of the biggest surprises among smaller cap tokens, Tibbir has been.. ripping, based on speculation and connection with Ribbit Capital.
Now at over $90m.
$TOSHI: Another bullish for Toshi, live on @base, finding itself at almost $300m in market cap.
They have been on a tear lately, launching many updates.
- Toshi Mobile:
@krakenfx trading:
Following the @pudgypenguins playbook? They just launched their plushes.
The Launchpad Wars
We've already touched upon this topic a few times in the past. However, things are different at the moment.
The main contenders:
While Virtuals has enjoyed a "virtually" (no pun intended) unchallenged monopoly, things are changing.
In particular, it is suffering from the limited impact of its ACP, heightened by the fact that most genesis launches have failed to sustain their growth.
Most virtual eco tokens are down badly, with charts in deep red.
The long-term sustainability of Genesis Launches cannot rely solely on speculation. For this reason, many have been calling on Virtuals to bring forward much-needed changes in Auction dynamics, loyalty points and more.
Seems some much needed changes are coming.
This also comes at a moment of strong competition.
$BID has just launched their Launchpad V2 and is seemingly attracting some of the speculators who were previously accumulating Genesis Virtual points.
Many, in fact, seem to have moved looking for better rewards, as the Virtuals' flywheel seems to slow down.
What about @loomlayai?
We're happy to host @vasilich_nick, growth lead at Loomlay, sharing some updates on the protocol.
On Loomlay: Trading Agents You Can Trust and Copy
Loomlay is building the infrastructure for agentic trading, where AI agents don’t just automate trades, but are able to execute structured strategies users can follow, verify, and profit from.
At the center of this is the Loomlay Agent Store, where anyone can activate fully transparent trading agents with one click.
These agents operate from visible wallets, display real onchain performance, and can be copied 1:1, making advanced trading more accessible, scalable, and trustworthy**.**
Where Are They Now?
Preparing to launch its revamped Agent Store, starting with copytrading on Ethereum DEXs such as Uniswap, etc.
Soon after, agents will expand to track traders on Hyperliquid and mirror trades on Mode, followed by support for Solana and centralized exchanges such as Binance.
A key differentiator is Loomlay’s commitment to transparency: all agents display their performance history, logic structure, and creator identity.
The implementation of crypto x AI is now shifting focus from prediction to execution. In a 24/7 market, the advantage increasingly belongs to those who can act automatically and consistently. According to recent data, perp DEX activity surged 36% in Q2 2025, while copytrading wallets on Base doubled.
The trend is clear: the market wants automation, but with auditability.
What’s Next?
Loomlay is onboarding beta testers and preparing to launch a referral program to incentivize early adoption.
The roadmap includes:
AI-powered agents capable of dynamic logic
Real-time sentiment parsing
More intelligent risk handling.
Despite these enhancements, the mission remains focused: bringing users execution they can trust, without code.
Weekly Content Roundup: What happened this week?
Web2 competition is coming stronger than ever. This week OpenAI introduced its agentic framework...... How many agents are going to be obliterated by this? It's time for crypto AI startups to step up their game and truly bring something new to the table.
- This is further exemplified by an increasing number of publicly traded companies embracing decentralized AI:
- Where are AI agents standing?
- Weekly update on Web2 AI:
Robots are... Coming already?
Chaos Labs research assistant AI is going live:
@delphi_digital launches Delphi Intelligence, a research platform focused on AI:
- GPT-5 coming?
- Here is some homework for the week, some cool apps to try:
- Codec launched RoboMove:
That's it for this week dear sirs!
May the green candles last longer.
Hopefully Bitcoin keeps going for it and we follow suit.
Originally published in the Castle Labs newsletter. Subscribe at research.castlelabs.io.