AI-Driven Crypto Activity May Not Translate to Token Value
Fidelity Digital Assets has sounded an alarm about the potential risks of artificial intelligence (AI) on cryptocurrency values. According to a report, cheaper AI development could increase crypto activity without necessarily increasing token value.
The report highlighted that AI agents have settled over $73 million across approximately 176 million blockchain transactions through April this year. Fidelity Digital Assets analyst Max Wadington noted that as AI lowers barriers to development and participation, competitive advantages may increasingly reside in factors such as liquidity, distribution, security, trust, and regulatory integration rather than technology alone.
Easier AI development could create more crypto applications without guaranteeing user demand or product-market fit. The report also stated that stablecoin issuers and service providers could capture more value from AI payments than base-layer tokens. Moreover, trading, lending, and borrowing may offer stronger value-capture opportunities, while AI could also increase security risks.