Blockchains and artificial intelligence are complementary technologies, according to crypto asset manager Grayscale, although markets have recently treated them as part of the same business.
Zach Pandl, head of research at Grayscale, said that while disruptive technologies tend to produce obvious winners and losers, the relationship between AI and blockchain is more symbiotic than competitive. Rapid adoption of AI is expected to reward some industries, such as chipmakers, while putting pressure on others, including professional services segments.
“While cryptocurrency valuations are closely correlated with declines in software stocks, we believe blockchains and AI are complementary from a fundamental perspective,” he said in a blog post published Wednesday.
U.S. stock markets have been focused on the decline recently. The S&P 500 software index has fallen about 20% since the start of the year, and cryptocurrency valuations have moved closely with the sell-off. But Pandl maintains that parallel withdrawal obscures a more constructive long-term dynamic between the two technologies.
Investor concern over the disruptive potential of artificial intelligence has sparked a selloff in technology and software stocks, erasing significant market value as traders reevaluate long-held valuations.
U.S. software and services stocks have fallen sharply, wiping about $1 trillion in market capitalization, as fears grow that rapidly evolving AI tools could upend traditional business models and revenue streams.
The S&P 500 software index has slumped as investors shy away from high-flying tech names amid increased volatility and skepticism about the speed and profitability of AI adoption.
Pandl says blockchains are likely to become the financial rails for AI agents. Today’s chatbots operate largely outside of the financial system. But if AI agents are equipped with digital wallets, he expects them to transact through blockchains rather than traditional banking infrastructure.
Blockchains offer transparency, near-instant settlement, 24/7 availability and global reach with an internet connection, he said. While opening a bank account requires a human intermediary, any user, including a bot, can create a blockchain address. Pandl said the increase in low-value stablecoin trading volumes would be an early signal of the implementation of this thesis.
At the same time, he argued that blockchain technology could help mitigate some of the risks associated with AI. As large language models proliferate, concerns about data provenance, deepfakes, and the concentration of control over resources and decision-making will likely intensify. Public blockchains, Pandl said, can provide verifiable records and more decentralized infrastructure to counteract these trends.
The report acknowledges that AI can also introduce new challenges for crypto networks. Advanced tools could make blockchain surveillance more effective, potentially eroding user privacy. AI agents can also discover new vulnerabilities in smart contracts; OpenAI recently launched EVMbench, an initiative to use AI to identify and remediate these risks.
Learn more: Crypto isn’t losing to AI, it’s just that ‘capitalism is doing its job,’ says Dragonfly
