The x402 standard, designed to facilitate AI agents in executing automated on-chain payments, has seen a dramatic decline in transaction volume, casting doubt on its role in the anticipated Agent Economy. Recent data from Artemis reveals that x402 transactions have dropped by over 92%, from an average of 731,000 daily transactions in December 2025 to just 57,000 by February 2026. This decline is particularly evident across networks like Base, Polygon PoS, and Solana. Lucas, an on-chain payments specialist at Artemis, attributes the downturn primarily to a contraction in the "Infrastructure & Utilities" segment, with platforms like x402secure.com and agentlisa.ai experiencing over 80% declines in activity. Despite the current lack of demand, analysts remain optimistic about the long-term potential of an agent-based economy, where AI agents operate autonomously. However, the x402 ecosystem's market performance remains underwhelming, with most projects having market capitalizations below $100 million, overshadowed by Chainlink's dominance.