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ETH and AI: How Ethereum’s Decentralized Network Stands to Benefit from the Intelligence Revolution

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Nexo Partners with Bakkt for US Crypto Exchange and Yield Programs

TLDR:

  • AI systems are projected to rely increasingly on decentralized crypto networks to coordinate global economic activity.
  • Ethereum stands apart from competing chains by offering genuine decentralization alongside deep liquidity and wide integrations.
  • ETH is currently trading at compressed valuations due to market cycles and widely misunderstood bear theses on value accrual.
  • As AI agents become routine across global markets, Ethereum’s Layer 1 and Layer 2 ecosystem is positioned as core infrastructure.

ETH is drawing renewed attention as a potentially undervalued asset in today’s financial landscape. Analysts and crypto investors are reassessing its long-term role as artificial intelligence continues to expand rapidly.

The relationship between AI systems and blockchain infrastructure is becoming a central topic among market participants. ETH, as Ethereum’s native asset, sits at the center of this growing conversation about the global economy.

ETH and AI: A Growing Economic Interdependence

Artificial intelligence has crossed major technical thresholds and is now being applied across nearly every industry.

The speed of AI adoption has shifted investor attention almost entirely away from the crypto sector. Yet, analysts are beginning to argue that AI’s long-term economic role is inseparable from decentralized infrastructure.

Ryan Berckmans, a crypto analyst, recently made this case in a post on X . He argued that AI must rely on crypto’s superior capacity to coordinate global economic activity. Offchain systems, in his analysis, cannot match what decentralized blockchain networks provide at scale.

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ETH emerges as a direct beneficiary of this interdependence. The Ethereum network provides both technical infrastructure and decentralization features that AI systems are expected to need.

As AI becomes more embedded in global commerce, reliance on Ethereum is projected to grow alongside it. This positions ETH as what some analysts describe as a call option on the future global economy.

Decentralization Separates Ethereum From Competing Chains

Crypto technology has, in many respects, already become commoditized across the industry. Numerous centralized Layer 1 networks have launched recently, each offering technical advantages to business customers.

These chains compete on performance but share a key limitation: they rely on centralized control. This trend toward centralization limits their ability to serve as a truly open global economic layer.

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As Berckmans wrote in his post, “Only one chain is becoming the noncommodity decentralized global hub.” Ethereum stands apart through its depth of liquidity, breadth of integrations, and a growing network of Layer 2 chains.

Reduced counterparty risk, a product of genuine decentralization, encourages more economic actors to bring activity onchain.

The division of labor remains the central engine of global wealth creation. Decentralized networks expand the reach of that engine by lowering barriers between participants in different markets. Ethereum’s design supports this expansion in a way that no centralized alternative has been able to match.

ETH’s Low Price Reflects a Widespread Market Misjudgment

ETH is currently available at prices that many long-term analysts view as deeply discounted. The ongoing crypto market cycle has compressed valuations, and popular bear theses on value accrual have added further pressure.

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Widespread misunderstanding of decentralization’s role in onchain growth has also kept the asset from being fully priced in.

Crypto market cycles have historically created windows where fundamentally strong assets trade well below intrinsic value.

Leading AI investments, meanwhile, carry valuations that are out of reach for most investors. Companies widely recognized as AI infrastructure beneficiaries, such as Nvidia and Apple, trade at expensive multiples. ETH, by contrast, remains openly accessible at what Berckmans described as a “fabulously low price.”

Looking further ahead, AI agents are projected to become a routine part of global economic activity. These agents will require decentralized infrastructure capable of coordinating transactions across borders and jurisdictions.

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Ethereum’s Layer 1, alongside its Layer 2 ecosystem, is well-positioned to serve as that foundational economic network layer.

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Crypto World

Bitcoin ETF Flows Rise As Gold Demand Cools: What’s Next for BTC?

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Cryptocurrencies, Israel, Gold, Bitcoin Price, Bitcoin Analysis, Adoption, Iran, Markets, Price Analysis, Market Analysis, Bitcoin ETF, ETF

Bitcoin (BTC) exchange-traded fund (ETF) flows have turned net positive over the past 30 days, while gold ETF demand has started to slow down after nine straight months of inflows. The shift comes even as gold prices remain elevated and sentiment around Bitcoin continues to cool.

With these contrasting trends in ETF flows and the historical pattern of Bitcoin-to-gold performance cycles, analysts are now examining data that may signal a gradual shift in investor demand between the two assets. 

Are ETF flows beginning to rotate?

According to the Kobeissi Letter, the largest US gold-backed ETF, GLD, recorded a $3 billion outflow on Wednesday, the largest daily withdrawal in more than two years. The move followed a 4.4% decline in gold prices, the sharpest drop since the Jan. 30 sell-off.

Gold ETFs had attracted $18.7 billion in January and another $5.3 billion in February, marking the strongest two-month start to a year on record and extending a nine-month inflow streak. The latest outflow points to investors taking profits after gold’s massive rally in 2025.

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Bitcoin ETF flows moved in the opposite direction over the past month. The 30-day net flow shifted to a $273 million inflow on March 6 from a $1.9 billion outflow on Feb. 6

Cryptocurrencies, Israel, Gold, Bitcoin Price, Bitcoin Analysis, Adoption, Iran, Markets, Price Analysis, Market Analysis, Bitcoin ETF, ETF
Bitcoin and gold net ETF inflows over the past 30-days. Source: bold.report

The holdings data measured in native units show the divergence more clearly. Bitcoin ETF balances moved to a net increase of 4,021 BTC on March 6 from −42,275 BTC on Feb. 6. Gold ETF holdings declined from 1.4 million ounces to 621,100 ounces during the same period.

The native units represent the actual underlying asset held by funds rather than the dollar value of those holdings. Tracking BTC or ounces isolates real accumulation or distribution without the distortion created by the price movements.

Head of growth at Horizon, Joe Consorti, summarized the current trend and said,  

“Gold is stalling out while bitcoin is soaring. BTC is set to overtake gold’s % growth over the last month as the U.S. economy accelerates and risk sentiment improves. The anticipated risk-off → risk-on rotation could be underway.”

Related: Bitcoin dip may not be over as retail ramps up buying below $70K: Santiment

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Gold rallies precede Bitcoin recoveries

In a “2026 Look Ahead” report released at the end of December 2025, Fidelity Digital Assets analyst Chris Kuiper noted that gold’s 65% return in 2025 was the fourth-largest annual gain since the end of the gold standard. With respect to past rallies, Kuiper noted that gold is potentially near the late stages of its leadership cycle between the two assets. Kuiper said, 

“Historically, gold and bitcoin have taken turns outperforming. With gold shining in 2025, it would not be surprising if bitcoin takes the lead next.”

However, the rotation may take some time to unfold in the market. 

Cryptocurrencies, Israel, Gold, Bitcoin Price, Bitcoin Analysis, Adoption, Iran, Markets, Price Analysis, Market Analysis, Bitcoin ETF, ETF
Bitcoin-to-gold ratio analysis. Source: Cointelegraph/TradingView

As illustrated in the chart, BTC needed roughly 147 days or 21 weeks to establish a sustained trend outperforming gold after Bitcoin’s 2022 bottom. The period marked a consolidation phase before the ratio began trending higher.

The BTC-to-gold ratio currently trades near the same consolidation zone seen during the earlier rotation phases in 2022-2023.

Kuiper also added that both assets can benefit from the persistent fiscal deficits, trade tensions, and geopolitical uncertainty as investors seek neutral stores of value outside traditional monetary systems.

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The ongoing US-Israel and Iran war has reinforced demand for traditional safe-haven assets, which previously supported gold rallies during periods of geopolitical stress.

Meanwhile, macroeconomic strategist Lyn Alden expects Bitcoin to outperform gold over the next two to three years following gold’s recent rally in the past few months. 

Related: When buying Bitcoin, don’t expect profit for at least 3 years: Data