Both prediction markets and AI-agents, two of the tech trends making headlines last year, are set to merge.
Polytrader AI is an AI-driven autonomous trading assistant that has been launched by Virtuals Protocol to capitalize on the hype.
Polytrader’s team claims it is the first AI agent specifically designed for prediction markets. It helps users. "identify and capitalize on trading opportunities," Decrypt The story was not told.
Plugging into Polymarket's API, the agent helps analyze news, trends, and data in real-time. It calculates spot mispricings, probabilities and how they align.
Polytrader's launch comes as Virtuals Protocol is spurring growth in the AI agent sector. Virtuals Protocol’s token has gained a lot of popularity. The total has risen to $1,9 billion Market capitalization before November 30, You can also find out more about the Data CoinGecko’s data shows it now has a value of over $2 billion. Polytrader's POLY Token on Base has fallen by 22,8% as of the date this post was published.
Virtuals Protocol, launched in January on Coinbase's Ethereum layer-2 scaling network Base, has emerged as a key player in the AI agent ecosystem. Through its Generative Autonomous Multimodal Entities Engine (GAME), the protocol allows developers build AI agents capable of social media posting and chat integration as well as content generation.
Decentralized prediction markets, such as Polymarket Somewhat, KalshiThis year has seen a surge in interest for. It is a great way to gauge how the markets respond to news about politics.
For almost half a year in the run-up to the U.S. elections, bettors on Polymarket had predicted Donald Trump's win. Trump’s win on 5 November proved them right.
What are AI agents and what do they do?
AI agents combine artificial intelligence, machine learning and natural language processing to automate complex tasks in diverse applications, such as customer service and trading.
Coinbase CEO Brian Armstrong has recently stated that future AI agent will be created by Coinbase. Use cryptography to transact Soon, they will be able to identify disinformation and protect their users against hacks, exploits, and other threats.
They can adapt and learn through their experience, making decisions in real time based on inputs from the environment and goals that have been predefined. These agents may work individually or within multi-agent system to resolve complex problems both personally and professionally.
The global AI agent market is attracting major tech companies such as OpenAI, Google and Amazon Web Services. The $3.86 billion mark Grand View Research has calculated that in 2023 there will be a doubling of the population.
The prediction markets have seen a booming. "transformative moment" Polytrader stated that this opens up a wide range of possibilities.
However, this does not mean markets have reached their maximum level of efficiency. Polytrader sees mispricings that result from impulsive trades, information gaps and low liquidity as some of the biggest challenges to growing prediction markets.
"These inefficiencies won't last forever, but right now, they present an unparalleled opportunity for those equipped to respond swiftly and intelligently," Polytrader’s team has said.
Sebastian Sinclair is the editor