SKN | Crypto Positioned to Benefit as AI Disrupts Software Industry, Says Kraken-Backed Investment Firm

A Kraken-backed investment firm has argued that the long-term outlook for crypto markets remains strong, particularly as artificial intelligence (AI) disrupts traditional software business models. The firm suggests that while AI compresses margins and reshapes value creation in software, it simultaneously strengthens the case for decentralized systems and blockchain-based infrastructure.

As global markets adjust to rapid technological change, the intersection of AI innovation and crypto adoption is emerging as a key theme for institutional investors.

Market Context: Crypto Resilience Amid Tech Sector Disruption

Bitcoin (BTC) continues to trade near $68,000–$72,000, while Ethereum (ETH) remains stable around $3,300–$3,600, reflecting resilience despite volatility in AI-related equities. Over the past month, crypto markets have recorded gains of approximately 4–7%, supported by steady institutional inflows.

Meanwhile, several software companies exposed to AI disruption have seen valuation declines of 8–15%, as investors reassess long-term revenue models in the face of automation and commoditization.

• BTC price: ~$70,000
• ETH price: ~$3,400
• Crypto market cap: $2.5T+

This divergence suggests that crypto assets are increasingly viewed as an alternative technological exposure, distinct from traditional software equities.

Structural Shift: AI Compression vs. Decentralized Expansion

The investment firm highlights a key structural trend: AI-driven efficiency is compressing margins in centralized software platforms, while blockchain networks offer open, decentralized alternatives that can capture value differently.

AI reduces barriers to entry in software development, potentially leading to increased competition and lower pricing power. In contrast, crypto networks derive value from tokenized ecosystems, network effects, and decentralized governance.

On-chain activity supports this narrative. Total value locked (TVL) across decentralized finance protocols remains above $90 billion, while daily active addresses across major blockchains have grown by approximately 10–15% year-over-year.

This indicates that despite short-term volatility, user engagement and capital deployment within crypto ecosystems continue to expand.

Investor Strategy: Reallocating Toward Emerging Infrastructure

Institutional investors are increasingly viewing crypto as part of a broader technology allocation strategy. Rather than competing directly with AI, blockchain is seen as a complementary layer that enables data ownership, transparent transactions, and programmable finance.

Capital flows reflect this shift. Crypto investment products have recorded consistent inflows, averaging $1–1.5 billion weekly, even as traditional tech funds experience outflows in certain segments.

Derivatives markets also indicate sustained engagement, with open interest in crypto futures holding near $85–95 billion. Funding rates remain neutral, suggesting balanced positioning rather than speculative excess.

Behaviorally, this reflects a transition toward long-term thematic investing, where capital is allocated based on structural trends rather than short-term momentum. Investors are increasingly focused on how emerging technologies interact and reshape value creation.

Strategic Outlook: Convergence of AI and Blockchain

While AI may disrupt traditional software firms, its integration with blockchain technology could unlock new use cases, including decentralized AI marketplaces, data verification systems, and autonomous financial protocols.

However, challenges remain. Regulatory uncertainty, scalability constraints, and security risks continue to influence adoption trajectories. Additionally, the pace of AI advancement introduces competitive pressure that could reshape both sectors in unpredictable ways.

Looking ahead, investors will monitor how capital continues to flow between AI-driven platforms and crypto ecosystems. The ability of blockchain networks to complement and integrate with AI technologies may determine their role in the next phase of digital infrastructure, positioning crypto as a potentially resilient component within an evolving technological landscape.