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

As artificial intelligence (AI) triggers volatility in tech stocks and drags down the software sector, digital asset management firm Grayscale argues that blockchain and AI are not competitors but rather long-term complementary, with blockchain poised to become a crucial infrastructure for the AI ​​economy. Zach Pandl, Grayscale's head of research, points out that while recent crypto asset price movements are highly correlated with the decline in software stocks, this synchronized correction masks a more constructive long-term relationship between the two technologies. Year-to-date, the S&P 500 Software Index has fallen by approximately 20%, with software and services companies losing about $1 trillion in market capitalization, putting pressure on crypto market valuations. Pandl believes that future AI agents equipped with digital wallets will be more likely to transact through blockchain rather than the traditional banking system. Blockchain's 24/7 operation, global accessibility, rapid settlement, and transparent verifiability make it an ideal infrastructure for AI agents to automate payments and transactions. The growth in small-value, high-frequency stablecoin transactions could be a significant indicator of this trend. Furthermore, Grayscale believes blockchain may help mitigate some of the risks associated with AI, such as the difficulty in verifying data sources, the proliferation of deepfake content, and the concentration of technological control. Public blockchains can provide verifiable records and a more decentralized infrastructure, thus creating a certain balance. However, the report also points out that AI technology may also bring new challenges to encrypted networks, including more efficient on-chain monitoring that could weaken privacy protections, and AI tools that may discover new security vulnerabilities in smart contracts. Overall, Grayscale believes that the rapid development of AI will bring new application scenarios to blockchain, rather than replacing the crypto industry.