From speculation to practicality, why are AI and stablecoins unafraid of bear markets?

Authored by: Cointelegraph

Translated by: AididiaoJP, Foresight News

Despite an overall decline in the cryptocurrency market in 2026, the performance of the artificial intelligence (AI) and stablecoin sectors has outperformed the market. Relevant data shows that the usage in these two areas continues to grow even as prices of other assets fall.

Key Points

The AI sector recorded the smallest decline of just 14% in the first quarter of 2026.

The total market capitalization of stablecoins reached a historic high of $320 billion, with monthly trading volume hitting $1.8 trillion, also a record level.

AI and Stablecoin Sectors Rise Against the Trend

In 2026, Bitcoin’s price fell by 18.5%, and the total market capitalization of cryptocurrencies dropped to $2.42 trillion, with most altcoins lagging behind. The market was affected by concerns and uncertainties related to the conflict between the U.S. and Israel—Iran, while the Federal Reserve maintained a hawkish stance, resulting in an overall cautious sentiment.

In contrast, AI and stablecoin-related businesses continued to grow against the trend, showing strong fundamentals and significant expansion, reflecting a shift in market focus from speculative behavior to infrastructure development.

Taking USDC issued by Circle as an example, data from Token Terminal shows that its supply has reached $78 billion, increasing by 220% since November 2023.

Meanwhile, the weekly active users of ChatGPT grew from 85 million in November 2023 to 900 million in March 2026, an increase of nearly 10 times in the same period.

(Chart: USDC Supply and ChatGPT Weekly Active Users; Source: Token Terminal)

Grayscale’s Q1 2026 report also corroborated this trend. The report noted that the AI sector had the smallest decline in Q1 at 14%, while the consumer and cultural sectors fell by 31%, the smart contract platform sector by 21%, and the currency sector by 21%.

The digital asset management firm stated that this indicates “investor preferences have shifted from momentum-driven, more speculative sectors.” The report further stated:

“Although overall market sentiment remains subdued, capital has begun to concentrate on projects with more solid fundamentals that align with key themes such as AI and tokenization.”

(Chart: All Sectors in Q1 2026 Show Negative Returns; Source: Grayscale)

Currently, the total market capitalization of AI tokens is approximately $17.4 billion, having risen by 30% in the past 30 days. Among them, Bittensor and NEAR Protocol (NEAR) led the gains, with prices increasing by 75% and 30%, respectively.

(Chart: Major AI and Big Data Token Market Capitalization; Source: CoinMarketCap)

In terms of stablecoins, the market size continues to expand. As of March 23, the total market capitalization of stablecoins reached a record $320 billion. USDt issued by Tether continues to dominate, with a market cap of approximately $184 billion, accounting for 57% of the total supply of stablecoins.

In February 2026, the monthly trading volume of stablecoins reached $1.8 trillion, setting a new historical high that can compete with traditional payment systems. USDC performed remarkably in terms of supply growth, increasing by 80% month-over-month, with last month’s trading volume reaching a historic high of $1.26 trillion.

(Chart: Total Market Capitalization of Stablecoins; Source: MacroMicro.me)

Stablecoins are cryptocurrencies designed to maintain stable value, typically pegged to fiat currencies like the U.S. dollar, and can operate across multiple blockchains.

In a bear market environment, stablecoins serve as a reserve of purchasing power and a settlement channel, widely used in trading pairs, tokenized real-world assets, and yield-bearing products. The transfer volume of stablecoins on Ethereum and other blockchains remains high, and institutional products launched by banks and fintech companies are gradually integrating stablecoins for yield management and capital operations. Even as speculative assets perform poorly, the role of stablecoins as infrastructure remains solid.

“Structural tailwinds” drive the convergence of growth in both sectors

The reason AI and stablecoin sectors can thrive is that they continue to provide tangible value even after the speculation frenzy has subsided.

Token Terminal states: “AI labs and stablecoin issuers are among the businesses with the strongest structural tailwinds in the 2020s.”

The crypto data provider further noted that these two areas are at the “intersection of technology, finance, and geopolitical forces,” with each force independently generating demand for both sectors. The report added:

“AI drives improvements in productivity and defense capabilities, while stablecoins provide financial infrastructure for the global distribution of U.S. dollars.”

Cryptocurrency trader Mando CT posted on the X platform on March 24 that AI and stablecoins are two of the four dominant sectors in 2026.

When explaining the convergence trend of these two sectors, the trader pointed out that AI needs an instant, low-fee payment system to support its operations, and stablecoins serve as the “internet currency” to achieve this goal.

Mando CT stated: “These trends are interconnected,” and added:

“2026 is not just another cycle rotation, but a year of transformation from speculation to infrastructure.”

According to Cointelegraph, stablecoins are expected to benefit from AI-driven payment scenarios, further driving long-term growth in both sectors by facilitating convenient, automated, rule-based transactions between entities.