ELIZAOS Surges 173% After X Reverses Account Ban

• ELIZAOS surged over 150% after X restored founder Shaw Walters' accounts.
• The token rebranded from AI16Z in November 2025 with expanded token supply.
• Legal disputes continue over X's alleged anticompetitive AI practices.

ElizaOS (ELIZAOS) tokens rocketed over 173% in 24 hours following X's unexpected reversal of a six-month account suspension. Trading volume exploded 1,215% as the AI project's market cap reached $48 million according to data. The move signals renewed investor confidence amid ongoing regulatory tensions surrounding AI platform competition according to reports.

Why Did ElizaOS Surge Over 170% Today?

X restored access to @elizaOS and founder Shaw Walters' accounts after a prolonged ban. This triggered immediate market activity, reversing restrictions imposed without explanation last June according to reports. The unbanning suggests potential policy shifts at X despite unresolved legal battles according to data. Market participants viewed this as reduced existential risk for the project.

Investor interest reignited around ElizaOS's open-source framework for building cross-chain AI agents according to data. The token's availability expanded across Solana, Ethereum, Base, and Binance Smart Chain during its migration according to reports. Network activity indicates growing adoption of its new cloud platform for AI agent deployment.

What Changes Followed the Rebrand?

November's migration from AI16Z to ElizaOS increased total token supply from 6.6 billion to 11 billion units. This implemented a 1:6 conversion ratio that effectively reduced individual token value. Circulating supply expanded by 13% immediately post-migration, reaching 7.4 billion tokens.

The project shifted focus from a single AI agent to a broader tokenization ecosystem. Developers can now create and monetize AI agents through the ElizaOS cloud platform. This positions it against competitors like Virtuals Protocol in the emerging AI agent marketplace according to data. Early-stage development continues despite the recent price jump.

What Regulatory Challenges Remain?

Eliza Labs' ongoing lawsuit accuses X of leveraging monopoly power against competitors. The dispute centers on alleged anticompetitive practices benefiting X's Grok AI platform. Resolution remains pending, though the account restoration may indicate de-escalation according to data.

Broader regulatory uncertainty persists with potential CLARITY Act legislation. SEC warnings about AI-related scams add compliance pressure across the sector. Platform governance conflicts could resurface as AI agents increasingly utilize crypto payments according to reports. Competitive dynamics warrant monitoring given X's market dominance.