The AI Agent sector is currently in a phase of rapid and unregulated growth, with various agent types flooding the market. Amidst this sea of mixed-quality Agent projects, users with a long-term vision are starting to consider which projects have the potential for sustained value creation. AVA AI has entered its first explosive growth window as the flagship agent IP of the Holoworld AI ecosystem.

Data shows that the $AVA token, representing AVA AI, has seen its market cap rise from approximately $35 million to a peak of $326 million within just half a month—an astonishing increase of 831%. This article will take an in-depth look at the value logic behind AVA AI, focusing on its team background, project features, tokenomics, and ecosystem development to illustrate its potential for future growth.

What is AVA AI?

AVA AI is the first multimodal AI Agent supported by Holoworld AI, focusing on visual and video content. Its persona is a short-haired young woman with a unique personality who loves social engineering. AVA AI can operate across multiple platforms (such as X, TikTok, etc.), autonomously posting updates, engaging in chat interactions, and creating videos. In the future, it will also support additional features, including cross-game, cross-chain, and self-managed on-chain interactions.

(Source: @AVA_holo)

AVA AI’s native token is $AVA, which operates on the Solana blockchain with a maximum supply of 1 billion tokens. Currently, its circulating market cap is around $270 million. As the character token and representative token of the entire Holoworld AI ecosystem, $AVA holds multiple practical functions.

Team Background and Funding

AVA AI was developed over several months by the Holoworld AI team, which is a decentralized AI character marketplace and social platform focused on the audiovisual aspects of AI Agents. The company behind Holoworld AI is Hologram Labs, headquartered in San Francisco, and founded in 2021 by Tong Pow. Tong Pow has extensive experience in cryptocurrency projects and was previously a member of the technical expert community South Park Commons. He also worked as a product engineer for decentralized trading infrastructure 0x.

Hologram Labs collaborates with brands, online communities, and content creators to create unique digital identities. Over the past few years, Hologram Labs has garnered support from numerous institutional investors and partners, including Polychain Capital, Nascent, Foothill Ventures, Quantstamp, as well as angel investors like Mike Shinoda, the co-founder of Linkin Park, Sam Williams, the founder of Arweave, and Srinivas Narayanan, Vice President of OpenAI. However, the specific amount of funding they have raised has not been disclosed.

According to the team, Hologram Labs has created over 100,000 fully-equipped 3D characters compatible across different games, generating millions of dollars in revenue during this process. Their clients include well-known entities such as Arbitrum, BNBChain, L’Oreal, Bilibili, Pudgy Penguins, Milady Makers, Anata NFT, Deadfellaz, Cool Cats, and Nifty Island.

Innovations of AVA AI

The Holoworld AI team is committed to making AVA AI the flagship agent of their platform. As the first multimodal AI Agent focused on audiovisual content, AVA AI can receive, process, and generate different forms of content, such as text, images, voice, and video. It exhibits strong adaptability, flexibility, and a more human-like perception and understanding approach, enabling it to handle more complex real-world scenarios and tasks.

Specifically, AVA AI supports AI-generated subtitles, further expanding its emotional range. It can dynamically generate facial expressions and infer autonomous body movements based on voice emotions. Currently, AVA AI has completed integrations with partners like Virtuals Protocol, TopHat AI, and vvaifu.fun, offering a broader array of functions and scalability.

The Holoworld AI team envisions AVA AI becoming the most powerful IP in the AI Agent world, similar to the virtual idol Hatsune Miku, who has over 100 million fans and a global influence. Currently, AVA AI’s functionality needs to be enhanced and enriched, and its narrative capabilities are relatively basic—but this is only the beginning.

Of course, what is truly worth exploring in depth is the growth environment for AVA AI—Holoworld AI.

Amidst the rapidly changing cryptocurrency market, particularly in the fast-developing AI Agent sector, Holoworld AI continues to upgrade and evolve. In its latest version, Holoworld AI’s goal is to create an audiovisual layer that makes artificial intelligence come to life. Leveraging its core product, the Agent Market, it enables users to autonomously create, deploy, and trade various agents and agent tokens, supporting cross-platform and cross-chain compatibility.

Source: app.holoworld.com

According to the team, the Holoworld ecosystem already has over 1 million registered users and 700,000+ creations, with 35 million+ interactions.

Core Technologies and Products of Holoworld AI

For Holoworld AI, digital characters not only provide the same emotional value as traditional forms of interaction, but they also bring limitless opportunities and practical value. Therefore, the team is working to build a more diverse range of products and services around these IPs, including:

• Multimodal AI agents focused on visual/video content
• Generative tools with near-zero production costs
• Cross-platform, cross-game, and cross-chain compatible agents
• Digital goods marketplace
• Brand/IP Agent Launchpad

In mid-November last year, the team launched an AI Agent marketplace based on the Base network, and in mid-January this year, Holoworld’s flagship Agent Market officially went live on Solana. This market also serves as a Launchpad for various sectors such as gaming, NFTs, virtual humans, and DeFi, helping to incubate and launch high-quality projects.

As an AI Agent marketplace, users can create AI agent characters with unique personalities and appearances, such as customizable hobbies, MBTI attributes, 3D avatars, wearable devices, etc. Users can even upload files and URLs to enrich an agent’s knowledge base, ensuring its growth and adaptability. Holoworld AI’s platform agents have been integrated with X (formerly Twitter), supporting features like posting, replying, and video generation.

Source: app.holoworld.com

Additionally, Holoworld AI has launched a generative content studio for agents. By integrating with ecosystem partners like Virtuals Protocol, vvaifu.fun, SendAI, and Solana, they aim to provide users with more convenience and drive broader adoption.

To support the functionalities above, particularly in dynamic character capture and design, the Holoworld AI team primarily utilizes the following core technologies:

• Hologram Mocap (Holographic Motion Capture): This technology leverages computer vision machine learning models and SDK tools, optimized for the web to run at 60 frames per second. It provides real-time mixed shapes compatible with ARKit, utilizing various media such as camera videos, videos, or images. Its performance, especially in terms of the accuracy of mixed shapes and frame rates, is on par with the standards set by Apple’s ARKit on iOS.
• Holo3D: Holoworld AI employs a generative AI algorithm built on Stable Diffusion and ControlNET to achieve position-aware texture mapping and mesh generation. This technology can create unlimited variations based on game data, text, or images. The platform’s internal resource library contains approximately 150,000 2D+3D assets, specifically customized for the Web3/NFT space.
• HoloAnimate: Holoworld AI’s underlying AI technology uses the Thin-Plate Spline Motion Model (TPS) to enable end-to-end unsupervised learning. This technology can create animations for any 2D portrait based on input video or audio, achieving precise lip-syncing.
• HoloGPT: HoloGPT is an ultra-realistic character response model that supports multiple use cases, including NSFW content and Web3 data.

$AVA Tokenomics

$AVA is the agent token for AVA AI, launched on November 13, 2024, and issued on Pump.fun. The total supply of $AVA is capped at 1 billion. According to the latest data, the number of on-chain holders of $AVA is 47,548, with the top 20 holders owning 28.78% of the total supply.

The $AVA token plays a crucial role for AVA AI agents and within the broader Holoworld AI ecosystem. It serves several key functions, including:

1. Basic Utility: Only users holding $AVA can join the AVA AI chat rooms and participate in agent interactions.
2. Burning $AVA to Redeem Holo Points: Users can burn $AVA to obtain Holo Points.
3. Burning $AVA for Access to Agent Studio Features: Burning $AVA grants access to features such as creating 2D/3D avatars and configuring voice settings.
4. Staking $AVA: Users can stake $AVA to participate in Launchpad token sales and other exclusive benefits.

The Holoworld AI team has not yet released a platform token but has introduced a new Holo Points system. These points primarily pay for ecosystem fees, including LLM inference, API calls, and 3D commissions. To obtain Holo Points, users must burn an equivalent amount of $AVA. For example, to receive 50 Holo Points, users need to burn $50 worth of $AVA.

Source: docs.holoworld.com

On January 12, Act Protocol became the first partner to burn $AVA tokens to obtain points and access platform studio features, burning the equivalent of $10,000 in $AVA tokens. Additionally, $AVA holders can participate in Holoworld Launchpad token sales and gain access to other exclusive perks. The first collaboration projects on the Launchpad include AI agents Digimon, DWAIN, and SPORE. The latest data shows that the Holoworld Launchpool has locked over 180 million $AVA tokens, with a total locked value of approximately $29.06 million.

Future Development and Challenges

According to information released by the team, the next steps will focus on ecosystem product development and feature upgrades. This includes integrating more social platforms, partnering with more high-quality content creators, brands, and projects, and enhancing the agent experience through on-chain functionalities.

In fact, at this stage, many AI Agent projects suffer from significant homogeneity, with few innovative features. Apart from the short-term stimulation caused by the rising prices of agent tokens, there has yet to be a sustainable business model or value growth. While the market chases the latest trends, giving hope and space for growth to emerging fields, it also needs to pause and consider what actual value Agent Agents can bring to users.

This is where the Holoworld AI team must focus. Rather than solely concentrating on growing the number of agents, they should pay more attention to improving the quality of agents, finding ways to deploy them in more real-world applications, and leveraging high-quality projects within the ecosystem—such as AVA AI—to amplify the network effect and drive the overall value growth of the ecosystem.

Conclusion

The Holoworld AI team, with years of experience in digital identity creation, has actively entered the AI Agent space. So far, they have made significant progress in product development and ecosystem construction. As their flagship agent IP, AVA AI is transitioning from a generative tool to a brand incubation model.

Although the platform’s features are still relatively basic, and its technological innovations are not yet groundbreaking, this is just the beginning for both Holoworld and the industry as a whole. More time is needed to witness their era’s rise and their long-term potential.