AVAT CEO says AI agents could strain blockchain capacity

Bart Smith, CEO of Avalanche Treasury Company, a Nasdaq-listed company pursuing a strategic accumulation of AVAX, said AI agents could create a shortage of blockchain transaction capacity, or blockspace, once they begin entering financial markets in earnest, The Block reported. Smith said that even if AI agent activity reaches only the low end of current expectations as AI enters financial markets, the related activity would take place on blockchains. Smith added that blockspace would not be sufficient and is no longer unlimited. Smith also said technical differences among Layer 1 blockchains such as Avalanche (AVAX), Solana (SOL) and Ethereum (ETH) in throughput, scalability and fees would become more important. By mid-2027, Smith expects traditional financial markets to shift to a five-day, 24-hour trading system, while existing financial infrastructure may struggle to handle that change, making new infrastructure necessary.