Bart Smith, CEO of Avalanche Treasury Company (NASDAQ ticker: AVAT), a listed company strategically accumulating Avalanche (AVAX), predicted in an interview with The Block that "when AI agents fully enter the financial market, 'blockspace,' the transaction processing capacity of blockchains, could become insufficient." He stated, "Even if AI agent activity only reaches the lower end of expected levels as AI enters the financial market, all related activities will occur on the blockchain. Blockspace will not be sufficient and is no longer infinite." He added, "Technical differences such as processing speed, scalability, and fees among Layer 1 (L1) blockchains like Avalanche (AVAX), Solana (SOL), and Ethereum (ETH) will become crucial. We anticipate that traditional financial markets will transition to a 5-day, 24-hour trading system by mid-2027, and existing financial infrastructure alone will struggle to handle this, thus requiring new infrastructure."
