Avalanche Treasury CEO: AI agents to strain L1 blockspace as financial markets evolve

Avalanche Treasury CEO Bart Smith warned that the mass adoption of AI agents in financial markets will exhaust Layer 1 blockspace, transforming it from an abundant resource into a scarce commodity. Smith predicts that traditional financial markets will likely transition to 24/5 trading by mid-2027, necessitating a shift to blockchain-based infrastructure to handle the increased load. He emphasized that as blockspace becomes limited, technical differences between L1 networks—such as latency, throughput, and fee models—will become critical factors for institutional and AI-driven adoption. Smith, formerly of Susquehanna Crypto, noted that Avalanche is positioned to support these high-security, privacy-focused commercial applications.