Automated market making (AMM) is set to evolve with the integration of wallet-based functionalities, according to insights shared by Joe Chalom. This development is expected to foster an 'agentic Ethereum economy,' significantly enhancing decentralized finance (DeFi) opportunities. The shift towards AMM from wallets could streamline transactions and increase accessibility within the DeFi space, potentially transforming how users interact with Ethereum-based financial services.