Grayscale: As AI impacts tech stocks, blockchain may become a long-term beneficiary

Odaily Planet Daily News: As artificial intelligence triggers volatility in tech stocks and drags down the software sector, digital asset management firm Grayscale states that blockchain and AI are not competitors but are long-term complementary technologies. Blockchain is expected to become a key infrastructure for the AI economy.

Grayscale’s Head of Research, Zach Pandl, pointed out that although recent crypto asset price movements are highly correlated with declines in software stocks, this synchronized correction masks a more constructive long-term relationship between the two technologies. This year, the S&P 500 Software Index has fallen about 20%, with the combined market value of software and service companies evaporating around $1 trillion, putting pressure on crypto market valuations as well.

Pandl believes that in the future, AI agents equipped with digital wallets will be more likely to conduct transactions via blockchain rather than traditional banking systems. Blockchain’s features—24/7 operation, global accessibility, fast settlement, and transparent verifiability—make it an ideal infrastructure for AI agents to automate payments and transactions. The growth of small, high-frequency transactions with stablecoins could be an important signal of this trend.

Additionally, Grayscale suggests that blockchain could help mitigate some risks associated with AI, such as unverifiable data sources, the proliferation of deepfake content, and concentration of technological control. Public blockchains can provide verifiable records and a more decentralized infrastructure, creating a system of checks and balances.

However, the report also notes that AI technology could pose new challenges to crypto networks, including more efficient on-chain monitoring that might weaken privacy protections, and AI tools potentially discovering new security vulnerabilities in smart contracts. Overall, Grayscale believes that the rapid development of AI will create new use cases for blockchain rather than replacing the crypto industry.

Disclaimer: The information on this page may come from third parties and does not represent the views or opinions of Gate. The content displayed on this page is for reference only and does not constitute any financial, investment, or legal advice. Gate does not guarantee the accuracy or completeness of the information and shall not be liable for any losses arising from the use of this information. Virtual asset investments carry high risks and are subject to significant price volatility. You may lose all of your invested principal. Please fully understand the relevant risks and make prudent decisions based on your own financial situation and risk tolerance. For details, please refer to Disclaimer.

Related Articles

MicroStrategy’s Q1 BTC loss of $14.5 billion, continued using high-interest preferred stock financing to buy Bitcoin

MicroStrategy announced that it would add to its holdings by purchasing 4,871 bitcoins for $330 million, bringing its total holdings to 766,970 bitcoins, but its average cost is already higher than the market price, and its first-quarter loss reached $14.5 billion. The company relies on preferred stock financing and faces pressure from the capital markets and the risk of asset valuation. Although its share price has rebounded slightly, its long-term outlook is still affected by the overall economy.

ChainNewsAbmedia04-07 00:54

Korea’s KOSPI index opens up 1.88%, and Japan’s Nikkei 225 index rises 0.40%

Gate News message, April 7, April 7 (Tuesday) opened, the South Korea KOSPI index (Korea Composite Stock Price Index) rose 102.43 points, up 1.88%, to 5,552.76 points. The Nikkei 225 index (Japan's stock market benchmark index) rose 211.55 points, up 0.40%, to 53,625.23 points.

GateNews04-07 00:18

Can Trump’s ultimatum stop the ceasefire? Oil prices are rising, and Bitcoin has fallen to 68K

The market is concerned about the impending military action, causing U.S. crude oil (WTI) prices to break above $112 per barrel and the stock market to rise slightly. Bitcoin briefly climbed to $70,351, then subsequently fell to $68K, and Ether also dropped below $2,100. Investors are watching the Federal Reserve meeting minutes and the inflation indicator PCE data, as the economic outlook remains unclear.

ChainNewsAbmedia04-06 23:54

Bitcoin Holds Weekly Inflows While Ether, Altcoin ETFs Slip

Bitcoin ETFs managed a modest weekly gain despite sharp swings, while ether extended its outflow trend. Solana and XRP also declined in a shortened trading week. Key Takeaways: Blackrock IBIT helped drive $22.34 million bitcoin ETF inflows, but volatility signals weak conviction ahead. Ether ET

Coinpedia04-06 22:36

Bitcoin Eyes $80,000 Milestone As Geopolitical Tensions in the Strait of Hormuz Reach a Boiling P...

The crypto market currently is at a pivotal point where technical momentum meets intense global uncertainty. After being stuck in a holding pattern for many weeks, BTC now appears poised to break out again as geopolitical narratives shift and additional volatility is expected. Top crypto analyst

BlockChainReporter04-06 22:04

TradFi Fall Alert: EURSEK (EUR/SEK) Falls Over 1%

Gate News: According to the latest Gate TradFi data, EURSEK (EUR/SEK) has dropped by 1% in a short period. Current volatility is significantly higher than recent averages, indicating increased market activity.

GateNews04-06 21:13
Comment
0/400
No comments