Avalanche Treasury Warning: Large-scale Entry of AI Agents into Financial Markets Will Severely Deplete L1 Blockchain Capacity

In the cryptocurrency circle (120btc.CoM): Recently, at the Avalanche Summit held in New York, Bart Smith, CEO of Avalanche Treasury, issued an important warning to the industry: a large number of AI agents are rapidly infiltrating the financial market, which will put unprecedented overload pressure on the blockchain's block space. In an exclusive interview with the professional media The Block, he pointed out that even with the most conservative estimates of AI agents' activity in the financial sector, such high-frequency automated on-chain trading instructions would be enough to stretch the existing network capacity to its limits.

Re-evaluating Public Chain Technical Barriers

At the current stage, ordinary users often overlook the technical differences among mainstream Layer 1 public chains, primarily because the supply of block space is relatively abundant at this stage. However, Smith believes this lenient situation is about to change. Once block space evolves into a scarce resource, the subtle differences in handling throughput, response latency, fee models, and sharding architecture among underlying networks such as Solana, Avalanche, and Ethereum will be magnified by the market.

These underlying indicators will directly determine which underlying chain institutional funds and AI agents ultimately prefer. The previously easy-going situation of full-chain compatibility is likely to be replaced by a harsh capacity quota mechanism.

All-weather Trading Forces Infrastructure Reconstruction

Regarding the evolution path of traditional finance, Smith proposed a more radical forward-looking judgment: by mid-2027, traditional financial markets are highly likely to transition to a model of 24/7 uninterrupted trading, five days a week. He emphasized that the existing outdated financial infrastructure cannot bear the load of all-weather trading, making the reconstruction of the underlying system imperative, and blockchain technology is undoubtedly the best carrier.

This deduction coincides perfectly with the native all-weather trading logic of crypto assets. Once AI agents can achieve all-weather investment decision-making, risk control checks, and settlement reconciliation, the fixed trading hours of traditional capital markets, constrained by human resources and settlement cycles, will be completely broken.

Three Major Evolution Trends Emerge

Public information shows that Bart Smith has led Susquehanna Crypto for 14 years, spanning both traditional finance and crypto assets. Since taking office at Avalanche Treasury Company, listed on NASDAQ in June 2026, he has continuously promoted the construction of institutional-level fund management systems. He believes that for commercial landing scenarios with extremely high privacy and security thresholds, the Avalanche architecture has significant advantages, which also confirms the recent deep layout of this ecosystem in the real-world asset (RWA) track.

As AI agents gradually establish their market dominance, block space will transform from a cheap public resource into a high-premium competitive commodity. The market may subsequently present the following three major evolutionary trends:

• Intensified competition for underlying expansion: For example, Ethereum's Rollup evolution, Solana's monolithic expansion plan, and Avalanche's Subnets architecture deployment.

• Diversification of pricing mechanisms: The billing model for block space will evolve into more complex market-oriented strategies, such as priority fees and reserved space for institutions.

• Reshaping on-chain traffic entry: The underlying chain preferences of AI agents will give rise to new tracks, with public chains that have extremely low latency, stable capacity, and high adaptability to automation capturing core traffic. If the above judgments are realized, the next two to three years will be the largest pressure test faced by blockchain infrastructure.

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