Written by: Cointelegraph
Compiled by: AididiaoJP, Foresight News
Despite the overall decline in the cryptocurrency market in 2026, the artificial intelligence (AI) and stablecoin sectors outperformed the broader market. Data shows that usage in these two areas continued to grow while other asset prices continued to fall.
Key points
- The AI sector recorded its smallest decline in the first quarter of 2026, at only 14%.
- The total market capitalization of stablecoins reached a record high of $320 billion, and monthly trading volume reached $1.8 trillion, also a record high.
AI and stablecoin sectors bucked the trend and rose.
In 2026, the price of Bitcoin fell by 18.5%, and the total market capitalization of cryptocurrencies dropped to $2.42 trillion, with most Altcoin underperforming. The market was affected by concerns and uncertainties related to the conflict between the United States and Israel and 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, demonstrating strong fundamentals and a significant expansion momentum, reflecting a shift in market focus from speculative behavior to infrastructure construction.
For example, according to data from Token Terminal, USDC, issued by Circle, has a supply of $78 billion, a 220% increase since November 2023.
Meanwhile, ChatGPT's weekly active users grew from 85 million in November 2023 to 900 million in March 2026, an increase of about 10 times over the same period.
(Chart: USDC Supply vs. ChatGPT Weekly Active Users; Source: Token Terminal)
Grayscale's Q1 2026 report also confirms this trend. The report points out that the AI sector saw the smallest decline in Q1, at 14%, while the Consumer & Culture sector fell 31%, the Smart Contract Platform sector fell 21%, and the Currency sector fell 21% during the same period.
The digital asset management firm stated that this indicates "investor preferences have shifted from more momentum-driven, speculative sectors." The report further points out:
"Despite the overall market sentiment remaining weak, capital has begun to concentrate on projects with stronger fundamentals and that align with key themes such as AI and tokenization."
(Chart: All sectors had negative returns in the first quarter of 2026; Source: Grayscale)
Currently, the total market capitalization of AI tokens is approximately $17.4 billion, up 30% in the past 30 days. Among them, Bittensor and NEAR Protocol (NEAR) have seen the largest gains, with prices rising by 75% and 30% respectively during the same period.
(Chart: Market capitalization of major AI and big data tokens; Source: CoinMarketCap)
In the stablecoin market, the market size continues to expand. As of March 23, the total market capitalization of stablecoins reached a record $320 billion. Tether's USDt continues to dominate, with a market capitalization of approximately $184 billion, accounting for 57% of the total stablecoin supply.
In February 2026, the monthly trading volume of stablecoins reached a record high of $1.8 trillion, rivaling traditional payment systems. USDC stood out in terms of supply growth, increasing by 80% month-over-month, with its trading volume reaching a record high of $1.26 trillion last month.
(Chart: Total market capitalization of stablecoins; Source: MacroMicro.me)
Stablecoins are cryptocurrencies designed to maintain a stable value. They are typically pegged to fiat currencies such as the US dollar and can operate on multiple blockchains.
In a bear market, stablecoins serve as a reserve of purchasing power and a settlement channel, widely used in trading pairs, tokenized real-world assets, and yield-generating products. Transfer volumes of stablecoins on Ethereum and other blockchains remain high, and institutional-grade products launched by banks and fintech companies are increasingly integrating stablecoins for yield management and fund operations. Even with sluggish performance of speculative assets, stablecoins remain a solid infrastructure.
"Structural tailwinds" are driving convergent growth in both sectors.
The reason why the AI and stablecoin sectors have been able to thrive is that they can still provide real value even after the speculative frenzy subsides.
Token Terminal points out: "AI labs and stablecoin issuers are among the companies with the strongest structural tailwinds of the 2020s."
The encrypted data service provider further stated that these two sectors are at the "intersection of three forces: technology, finance, and geopolitics," with each force independently driving demand for both sectors. The report added:
"AI is driving productivity and defense capabilities, while stablecoins provide the financial infrastructure for the global distribution of the US dollar."
In a post published on the X platform on March 24, cryptocurrency trader Mando CT stated that AI and stablecoins are two of the four dominant sectors in 2026.
In explaining the convergence trend of the two sectors, the trader pointed out that AI needs an instant, low-fee payment system to support its operation, and stablecoins are the "internet currency" that can achieve this goal.
Mando CT stated, "These trends are interconnected," adding:
"2026 is not another cycle, but a year of transformation from speculation to infrastructure."
According to Cointelegraph, stablecoins are poised to benefit from AI-driven payment scenarios, further driving long-term growth in both sectors by enabling convenient, automated, rules-based transactions between entities.
