AI Agents May Trigger Blockspace Crunch, Warns Avalanche Treasury CEO
Avalanche Treasury CEO Bart Smith has warned that AI agents could trigger a blockspace crunch on the network. He believes that as automated finance expands, AI agents will create persistent demand for limited Layer 1 capacity.
Smith expects software-driven trades, payments, and position management to generate constant on-chain demand. This could test assumptions that blockspace is effectively unlimited, he said.
Avalanche's dedicated Layer 1 environments allow institutions to configure participation, validators, and operational controls, making it particularly suited for business uses requiring privacy and security.
Smith also predicted that major traditional markets will adopt 24/5 trading by mid-2027. This would require new systems for clearing, collateral, settlement, and risk management, which he believes will use blockchains rather than extensions of legacy infrastructure.