AI rout hits software stocks, but Grayscale says blockchains stand to benefit
Analysis
Price Impact
MedThe report suggests that while ai has caused a downturn in software stocks, which has correlated with crypto sell-offs, blockchains could benefit long-term as financial infrastructure for ai agents. this is a positive outlook but doesn't guarantee immediate price increases.
Trustworthiness
HighGrayscale is a reputable digital asset manager, and their research head's analysis carries significant weight in the crypto space. the reasoning provided is logical, highlighting complementary roles.
Price Direction
BullishThe long-term outlook is bullish as grayscale posits blockchains will become the financial rails for ai agents, leading to increased transaction volumes and potentially higher demand for cryptocurrencies that facilitate these transactions. the potential for blockchains to mitigate ai risks also adds a layer of positive sentiment.
Time Effect
LongThe analysis focuses on the fundamental and long-term symbiotic relationship between ai and blockchains, suggesting that the benefits will materialize over an extended period rather than in the short term.
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Tech Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email AI rout hits software stocks, but Grayscale says blockchains stand to benefit As AI rattles tech stocks, Grayscale's head of research said blockchains will power intelligent agents’ transactions and help offset emerging risks. By Will Canny , AI Boost | Edited by Nikhilesh De Feb 26, 2026, 6:23 p.m. Make us preferred on Google AI rout hits software stocks, but Grayscale says blockchains stand to benefit. (CoinDesk) What to know : Grayscale’s Zach Pandl said AI and blockchains are fundamentally complementary, even as crypto has sold off alongside software stocks amid AI-driven market volatility. Pandl argued blockchains could become the financial rails for AI agents, enabling wallet-based, 24/7 global transactions. He also said blockchains may help address AI risks such as deepfakes and centralized control. Blockchains and artificial intelligence are complementary technologies, according to crypto asset manager Grayscale, even as markets have recently treated them as part of the same trade. Zach Pandl, Grayscale's head of research, said that while disruptive technologies tend to produce clear winners and losers, the relationship between AI and blockchain is more symbiotic than competitive. Rapid AI adoption is expected to reward some industries, such as chipmakers, while pressuring others, including segments of professional services. "Although crypto valuations have been tightly correlated with the drawdown in software stocks, we think blockchains and AI are complementary from a fundamental standpoint," he said in the Wednesday blog post . U.S. equity markets have lately focused on the downside. The S&P 500 software index has fallen roughly 20% year to date, and crypto valuations have moved closely with the selloff. But Pandl maintains that the parallel drawdown obscures a more constructive long-term dynamic between the two technologies. Investor anxiety about artificial intelligence’s disruptive potential has sparked a broad sell-off in tech and software stocks, erasing significant market value as traders reassess long-held valuations. U.S. software and services shares have plunged sharply, wiping out roughly $1 trillion in market capitalization, as fears mount that fast-advancing AI tools could upend traditional business models and revenue streams. The S&P 500 software index has slumped as investors rotate out of high-flight tech names amid heightened volatility and skepticism over how quickly and profitably AI adoption will play out. Pandl contends that blockchains are likely to become the financial rails for AI agents. Today’s chatbots operate largely outside the financial system. But if AI agents are equipped with digital wallets, he expects them to transact over blockchains rather than traditional bank infrastructure. Blockchains offer transparency, near-instant settlement, 24/7 availability and global reach with an internet connection, he said. While opening a bank account requires a human intermediary, any user, including a bot, can create a blockchain address. Pandl said rising volumes of low-value stablecoin transactions would be an early signal that this thesis is playing out. At the same time, he argued that blockchain technology could help mitigate some of AI’s risks. As large language models proliferate, concerns around data provenance, deepfakes and the concentration of control over resources and decision-making are likely to intensify. Public blockchains, Pandl said, can provide verifiable records and more decentralized infrastructure to counterbalance those trends. The report acknowledged AI may also introduce new challenges for crypto networks. Advanced tools could make blockchain surveillance more effective, potentially eroding user privacy. AI agents may also uncover new vulnerabilities in smart contracts; OpenAI recently launched EVMbench , an initiative aimed at using AI to identify and patch such risks. Read more: Crypto isn't losing to AI, its just 'capitalism doing its job,' says Dragonfly AI Blockchains Grayscale AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards . For more information, see CoinDesk's full AI Policy . More For You Vitalik Buterin unveils Ethereum roadmap to counter quantum computing threat By Margaux Nijkerk | Edited by Nikhilesh De 10 minutes ago This move comes shortly after the Ethereum Foundation established a dedicated post-quantum research team to study the issue. 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