Inside the x402 Token Boom: The New Payment Standard Powering AI Agents

The strong return of the AI Agent wave, this time under a new narrative: x402 tokens. But what exactly is x402? Should investors rush into this trend—or is it just another bubble waiting to burst?

This article explores the opportunities and potential risks, drawing from the latest ecosystem data and expert opinions shared on X.

Why x402 Tokens Attracted Massive Capital in October

The x402 is not a typical token. It is an open payment protocol for AI agents and APIs, enabling them to perform automated transactions without requiring accounts, signups, or API keys.

The name “x402” comes from the HTTP status code 402 – “Payment Required”, a classic web standard now reimagined to transform any web request into an instant payment transaction using stablecoins like USDC, across any blockchain.

The funding wave originated from a series of major events in recent months. This allows AI agents to handle flexible payments, from micropayments below one cent to deferred payment agreements, while resolving disputes and aggregating invoices for data-scraping agents.

Then, in October, venture fund a16z revisited Gartner’s forecast that by 2030, machine customers will directly influence or participate in $30 trillion worth of purchases. a16z emphasized the significance of x402, AI agents, and the collaboration between Coinbase and Cloudflare.

These announcements fueled strong momentum across the x402 ecosystem. According to x402scan, since Coinbase’s launch in May, the ecosystem has recorded 1.38 million transactions, $1.48 million in volume, over 72,500 buyers, and 1,000 sellers.