Every market cycle starts with a seemingly premature story that becomes true, evolving by prioritizing price, then product. x402 proves speculation is vital pre-capital, not just distraction 🧵
Markets anticipate infrastructure development and price expectations, not just current realities. Speculation in crypto catalyzes coordination and capital formation and this pattern repeats.
➤ 2021: L2s valued like economies, pre-fee era. ➤ 2023: RWAs as "onchain treasuries," assets mostly on spreadsheets. ➤ 2025: x402 AI payment standard jumps 350% in a month. cycle: narrative → liquidity → infrastructure → utility.. belief precedes proof.
● What x402 Really Is As my quant @Hercules_Defi explained here: The HTTP 402 code (payment required) was a forgotten web standard. x402 revives it as an open payment protocol for machines, allowing AI agents to pay APIs, datasets, and compute nodes directly in stablecoins.
I’ve been seeing x402 everywhere lately, and I’m sure you have too. So I finally sat down to really understand what it’s all about… and damn it’s one of those things that makes you stop and go, “Oh wow, this actually changes everything.” Let me explain in a Eli5 way.👇 ------------------------------------------------ AI can already think, reason, code, write, talk, create art, basically do everything… except one thing: make payments on its own. Crazy, right? ➦ We’ve built AIs that can simulate humans, but they still can’t buy an API or pay for data without us. Picture this: Your AI assistant finds the perfect API for real-time market data. But it can’t use it unless you first: ➢ Create an account ➢ Add a payment card ➢ Copy API keys ➢ Set up billing By the time you’re done, the opportunity is gone. That’s been the story forever. ------------------------------------------------ ➦ Then comes x402, the missing piece. It’s a payment protocol that lets AI make autonomous payments instantly. Here’s how it works and it’s pure genius: ➢ Your AI asks for access to an API ➢ The server replies “402 Payment Required” ➢ The AI attaches the payment automatically ➢ Boom access granted No accounts. No subscriptions. No humans in the loop. Just instant, on-chain payments in milliseconds. ------------------------------------------------ That means your AI can now pay, earn, and transact, completely on its own. It can rent GPU power, buy datasets, subscribe to models, or license APIs. Basically, it can handle its own economy. ➦ We’re officially entering the era of machine-to-machine payments. And here’s what blew my mind, it’s not just for AI. Humans can use it too. You can integrate x402 into your product with a few lines of code and unlock crazy possibilities like: ➢ Pay-per-API call: $0.02 per request instead of $99/month. ➢ Pay-per-article: $0.10 to read just what you want. ➢ Pay-per-second of content: $0.01 for every second watched. No middlemen. No subscriptions. Just direct, fair payments. ------------------------------------------------ x402 isn’t just another tech update, it’s a shift in how we think about value exchange online. It’s giving both humans and machines the ability to transact freely, instantly, and autonomously. The more I looked into it, the more I realized: This isn’t just an upgrade for AI, it’s the foundation for the autonomous economy that’s coming next. Lemme know your thoughts on x402!
Since its may launch (coinbase + cloudflare foundation), the network has recorded: > 1.79M transactions > 103k buyers > 11k sellers > $2.16M in total volume Yet the “x402 ecosystem” trades at $821M market cap, a valuation to usage ratio of roughly 800×.
Leading players include @eigenlayer, @pingobserver and @PayAINetwork, @bankrbot. That gap isn’t irrational, it’s reflexivity in motion. The difference this time is that - L2s monetized blockspace. - RWAs monetized collateral. - x402 is trying to monetize intent.
It's the first story where buyers are AI, not humans. If true, soon agents will: > pay for inference, data, and context; > settle instantly in $USDC, creating their own economy Gartner predicts a $30T market by 2030, but for now, it's mostly just anticipation.
● Why markets price the future early Crypto markets prioritize coordination & trades shape reality.. for now its liquidity first, legitimacy later because attention builds justified infrastructure. Dismissing x402 as “early” ignores the market's bet on inevitability.
● R/R of x402 x402 risks: thin usage, meta-trading, narrative leverage.. gauging its potential is tough. ..on the other hand, it could be the first standard seeing AI as money & if it works, models are customers, APIs are merchants and transactions show machine intelligence.
Tagging some DeFi chads so you don’t miss out on anything related @eli5_defi, @Mars_DeFi, @crypto_linn, @arndxt_xo, @TheDeFiKenshin, @Hercules_Defi, @cryptorinweb3, @_SmokinTed, @St1t3h, @thelearningpill, @Nick_Researcher, @0xAmin7, @0xCheeezzyyyy, @yashasedu, @RubiksWeb3hub, @monosarin, @Defi_Warhol, @Haylesdefi, @twindoges, @0xfreestyler.
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