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Avalanche CEO warns AI agents will strain L1 blockchain capacity

9/21/2026

The pressure on Layer 1 blockchain infrastructure is intensifying as artificial intelligence agents begin to consume computational resources at scale.

Against this backdrop, traditional financial markets are expected to shift toward 24/5 trading by mid-2027, a move that will require new infrastructure to support continuous activity.

The implications of this shift are now reaching the core of blockchain networks, where capacity constraints are becoming a primary concern for developers and investors alike.

The Capacity Squeeze Smith, the CEO of Avalanche Treasury, stated that there is not enough blockspace to handle the emerging workload.

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