Is there still a chance for AI tokens that have plummeted 94%? Understand the MyShell (SHELL) ecosystem in one article

December 19, Gate market data shows that MyShell (SHELL) is priced at approximately $0.042, down about 2.2% over the past 24 hours. The intra-day high reached $0.044, and the low fell back to $0.039, with a 24-hour trading volume of around $150,000.
From a longer-term perspective, SHELL has shown a clear continuous downward trend over the past few months, with a total decline of nearly 94% compared to its all-time high.

In the context of AI becoming one of the long-term narratives in the crypto market, MyShell, as a project in the “decentralized AI consumer layer,” exhibits a stark contrast between its token performance and the sector’s hype. Behind this phenomenon are factors related to the project’s ecosystem development and the current real-world challenges faced by the AI crypto sector.

1. What is MyShell? The Positioning and Logic of the AI Consumer Layer

MyShell is a project positioned as a decentralized AI consumer layer (AI Consumer Layer). Its goal is not to create a single AI model but to provide an infrastructure layer where developers and ordinary users can build, combine, and directly use AI agents (AI Agents).

Unlike AI projects focused on computing power, data, or model training, MyShell emphasizes AI’s “usability” and “consumption attributes,” aiming to enable AI to serve as tools, assistants, or even services directly to end-users. This positioning determines that MyShell’s ecosystem focus is not on “technical parameter competition,” but on whether sustainable applications and usage scenarios can be formed.

2. Overview of Core Ecosystem Components of MyShell

Centered around AI application construction and interaction, MyShell has built a relatively complete modular ecosystem covering key aspects such as voice, text generation, and AI agent execution.

From an ecosystem structure perspective, MyShell aims to lower the barriers to building AI applications through modular design, enabling developers to focus more on specific use cases rather than underlying model details.

3. The Economic Model and Ecosystem Applications of the SHELL Token

SHELL is the native token within the MyShell ecosystem, with core functions revolving around ecosystem incentives, service payments, and governance participation. In terms of design logic, SHELL is not merely a trading token but aims to serve as a value intermediary connecting users, developers, and AI services.

In ecosystem operations, SHELL is used to pay for certain AI service invocation fees, incentivize ecosystem contributors, and serve as a voting credential for governance. Theoretically, as the usage frequency of AI services increases, the actual demand for SHELL should also grow, creating a value feedback loop.

However, based on current market performance, this “usage-driven value” positive cycle has not yet been fully established.

4. The Core Reasons for the Continuous Decline in SHELL Price

The long-term downtrend of SHELL is not caused by a single event but results from multiple factors stacking together.

First, insufficient real-world ecosystem usage is a key concern. If AI products fail to generate a stable user base and payment behavior, the demand side for the token cannot support its price.

Second, competition in the AI crypto sector is extremely fierce. Currently, AI-related projects cover various directions such as compute networks, data protocols, inference markets, and AI agent platforms. MyShell has not yet formed a sufficiently distinctive advantage in narrative.

Additionally, the overall market environment cannot be ignored. During periods of risk aversion, capital tends to flow into more liquid assets like Bitcoin and Ethereum, while high-volatility, high-valuation AI tokens are more easily pressured.

Finally, the selling pressure from early incentive releases and the gap between expectations and reality have also amplified price corrections to some extent.

5. The Mid- to Long-term Trend of AI Sector in the Crypto Market

Despite short-term pressure, AI is still regarded as one of the important long-term directions in the crypto market. In the future, the integration of AI and blockchain may be more reflected in practical tools, such as on-chain data analysis, smart contract auditing, automated trading, and cross-chain collaboration.

Meanwhile, the commercialization path of AI services will become clearer, gradually shifting from “concept-driven” to “pay-per-use” and “value-sharing” models. Projects with long-term potential often depend on whether they can balance user scale, cost control, and tokenomics.

For MyShell, whether it can expand ecosystem use cases and enhance the irreplaceability of AI services will be key to reversing market expectations.

6. Summary

The significant retracement of SHELL is not just price fluctuation but a reflection of the common challenges faced by early-stage AI crypto projects. While MyShell’s positioning in the AI consumer layer has some exploratory value, ecosystem usage, competitive pressure, and market cycles continue to pose ongoing tests.

In the long-term trend of deep integration between AI and crypto, project value will ultimately return to genuine demand and sustainable business models. For users, understanding the project fundamentals and sector cycles is far more important than chasing short-term price swings.

Disclaimer

This article is for informational sharing and market research reference only and does not constitute any investment advice or trading recommendation. Cryptocurrency prices are highly volatile and risky; users should make independent judgments and proceed cautiously based on their own circumstances.