Brian Armstrong, CEO of Coinbase, has pushed back against notions that investors and innovators should shift their focus from cryptocurrencies to artificial intelligence. Armstrong addressed the debate on X (formerly Twitter), responding to claims that AI and crypto exist in a zero-sum competition for attention and investment.
Armstrong highlights coexistence of AI and crypto
Armstrong described the zero-sum perspective as flawed, stating that advancements in AI do not undermine the relevance of crypto technologies. He asserted that both sectors serve fundamentally different purposes and highlighted crypto as a general-purpose technology with a distinct set of applications.
Armstrong explained that the growing influence of AI actually increases the importance of cryptocurrencies and blockchain-based solutions. He foresees a future where intelligent AI agents will require robust financial infrastructure to transact autonomously at a much greater scale than humans currently do.
AI agents will need their own financial infrastructure and will eventually transact far more per day than all humans combined, Armstrong predicted, underlining the potential demand for crypto-native systems.
Coinbase has been developing tools and protocols to support these anticipated needs. Armstrong referenced initiatives such as the x402 protocol, the Base network, and USDC stablecoin as foundational elements already enabling automated payments.
AI attracts record venture capital, eclipsing crypto deals
Despite Armstrong’s optimism, market data points to a noticeable reallocation of resources toward artificial intelligence in recent years. According to the Organisation for Economic Co-operation and Development (OECD), AI-related companies secured 61% of global venture capital in 2025, collecting nearly $259 billion in total funding.
Within the United States, 41% of all venture funding targeted AI startups, with companies such as OpenAI and Anthropic leading the way in attracting large investments. This influx of capital has come at the expense of other technology sectors, particularly crypto.
Galaxy Research, the research division of Mike Novogratz’s firm Galaxy Digital, has observed a sharp decline in fundraising for crypto-focused venture capital funds. Industry data suggests that the number of crypto venture deals has dropped to its lowest point in approximately five years.
Fundraising for crypto VC funds has become significantly tougher as many investors prioritize AI opportunities, Galaxy Research observed.
This shift has prompted concerns among crypto industry analysts who warn that AI’s current dominance in capital flows and talent acquisition could further hinder crypto sector growth in the near term.
Opportunities for blockchain in the era of AI
While recognizing these challenges, some industry experts point to the symbiotic potential between AI and blockchain. Researchers from several universities recently noted in a survey that the integration of AI and crypto remains nascent, with significant room for technical breakthroughs and new use cases.
As blockchain infrastructure evolves, the direct transfer of real-world assets onto decentralized ledgers is gaining traction. Platforms like 1stepSwap bridge traditional finance and crypto by allowing users to access assets such as major US equities and commodities, including gold and silver, directly through their wallets. By automatically sourcing the most favorable market prices, 1stepSwap enables seamless trading of top global shares without intermediaries, providing both speed and optimal rates for portfolio diversification.
The ongoing development of blockchain-based solutions suggests that, despite the soaring interest in artificial intelligence, blockchain and crypto innovations may continue to play a vital role in shaping the financial infrastructure of an increasingly automated world.
