AgentFi.News desk briefing of reporting by The Block.

‘There’s not enough blockspace’: Avalanche Treasury CEO says AI agents could crunch L1 blockchain capacity

Avalanche Treasury CEO Smith warns that the rapid adoption of autonomous AI agents is straining Layer 1 blockchain capacity, creating a critical bottleneck for the emerging AgentFi sector. As traditional financial markets transition to 24/5 trading by mid-2027, the demand for high-throughput infrastructure will intensify. This shift highlights the urgent need for scalable solutions to support the continuous, algorithmic execution inherent in AgentFi. Without adequate blockspace, the potential for decentralized, agent-driven finance remains constrained, necessitating immediate infrastructure upgrades to handle the volume of autonomous transactions expected in the near future.

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