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- Smith said the adoption of AI agents could cause trading volume in financial markets to surge, potentially leading to a shortage of block space.
- He said that as transaction demand rises, technical differences among Layer 1 blockchains will determine competitiveness, and that the distinctions among Solana (SOL), Avalanche (AVAX) and Ethereum (ETH) will become a decisive factor.
- Smith said Avalanche, with its focus on privacy, security and network scalability, is well suited for enterprise applications, and that new financial infrastructure is likely to be built on blockchain.
Forecast Trend Report by Period
The broad adoption of artificial intelligence agents in financial markets could trigger a surge in trading volume and stretch blockchain processing capacity to its limits, crypto news outlet The Block reported on September 17.
Bart Smith, chief executive officer of Avalanche Treasury Company, made the remarks at the Avalanche Summit in New York. Even if AI agent adoption reaches only a minimal threshold, an enormous number of transactions would take place on blockchain networks, he said. Block space is not unlimited and could eventually become scarce.
As demand for transactions rises, Smith said, the technical differences among Layer 1 blockchains will determine which networks are most competitive. For now, capacity remains ample enough that the distinctions among Solana (SOL), Avalanche (AVAX) and Ethereum (ETH) do not matter much. Over time, however, those differences will become decisive.
He added that Avalanche is well suited for enterprise applications that prioritize privacy and security. In a market where AI agents automatically execute financial transactions, processing speed alone will not be enough. Security, data protection and network scalability will also become critical.
Smith also said existing financial infrastructure alone would struggle to handle around-the-clock trading demand. It would be surprising if traditional financial markets had not shifted to a five-day, 24-hour operating model by mid-2027, he said, adding that new financial infrastructure is likely to be built on blockchain.
Source: en.bloomingbit.io