Grayscale: AI and Blockchain Are Complementary Technologies Despite Market Sell-Off

Artificial intelligence and blockchain technology are more complementary than competitive, according to crypto asset manager Grayscale, even as financial markets continue to treat them as part of the same risk trade. Zach Pandl, Grayscale’s head of research, said recent declines in crypto valuations alongside software stocks mask a fundamentally constructive long-term relationship between AI and blockchain.

U.S. equity markets have faced significant pressure this year, particularly in the technology sector. The S&P 500 software index has dropped about 20% year to date, while software and services companies have collectively lost շուրջ $1 trillion in market capitalization. Investor concerns over artificial intelligence disrupting traditional business models have fueled the tech sell-off, with traders reassessing valuations amid rapid AI adoption.

Despite the correlation between crypto markets and declining software stocks, Pandl argues that blockchain and AI operate in a symbiotic ecosystem. He believes blockchains could serve as the financial infrastructure for AI agents in the future. Currently, most AI chatbots function outside the traditional financial system. However, if AI agents are equipped with digital wallets, they may rely on blockchain networks instead of banks to execute transactions.

Blockchain technology offers key advantages, including transparency, near-instant settlement, 24/7 availability, and global accessibility via an internet connection. Unlike traditional bank accounts, which require human verification, blockchain addresses can be created by anyone — including AI-powered agents. Pandl suggests that increasing volumes of low-value stablecoin transactions could signal growing AI-driven blockchain activity.

At the same time, blockchain may help address AI-related risks such as data provenance issues, deepfakes, and centralized control over decision-making. Public blockchains provide verifiable records and decentralized infrastructure that can enhance trust and accountability.

However, AI could also introduce new challenges for crypto networks. Advanced AI tools may improve blockchain surveillance, potentially reducing user privacy, and could identify vulnerabilities in smart contracts. Initiatives like OpenAI’s EVMbench aim to use AI to detect and fix such weaknesses, highlighting the evolving intersection of artificial intelligence and cryptocurrency technology.