Written by: Cointelegraph

Compiled by: AididiaoJP, Foresight News

Despite the overall downturn in the cryptocurrency market in 2026, the performance of the artificial intelligence (AI) and stablecoin sectors has outperformed the broader market. Relevant data shows that while the prices of other assets continue to fall, usage in these two sectors continues to grow.

Key Takeaways

• The AI sector recorded the smallest decline in Q1 2026, at just 14%.
• The total market capitalization of stablecoins reached a new all-time high of $3.2 trillion, with monthly trading volume hitting $1.8 trillion, also a record high.

AI and Stablecoin Sectors Defy the Downtrend

In 2026, Bitcoin's price fell by 18.5%, and the total cryptocurrency market capitalization dropped to $2.42 trillion, with most altcoins underperforming. The market was affected by concerns and uncertainties related to the US and Israel-Iran conflict, while the Federal Reserve maintained a hawkish stance, leading to a generally cautious sentiment.

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

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

Meanwhile, the number of weekly active users of ChatGPT grew from 85 million in November 2023 to 900 million in March 2026, an approximately 10-fold increase during the same period.

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

A Q1 2026 report from Grayscale also confirmed this trend. The report pointed out that the AI sector had the smallest decline in the first quarter, at 14%, while the Consumer & Culture sector fell 31%, the Smart Contract Platforms sector fell 21%, and the Currency sector fell 21% during the same period.

The digital asset management company stated that this indicates "investor preference has shifted away from momentum-driven, more speculative sectors." The report further stated:

"Although overall market sentiment remains low, capital has begun to concentrate in projects with stronger fundamentals that align with key themes such as AI and tokenization."

(Chart: Negative Returns Across All Sectors in Q1 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) led the gains, with prices rising 75% and 30% respectively during the same period.

(Chart: Market Capitalization of Major AI & Big Data Tokens; Source: CoinMarketCap)

Regarding stablecoins, their market size continues to expand. As of March 23rd, the total market capitalization of stablecoins reached a record $3.2 trillion. USDt, issued by Tether, continues to dominate with a market capitalization of approximately $1.84 trillion, accounting for 57% of the total stablecoin supply.

In February 2026, the monthly trading volume of stablecoins reached $1.8 trillion, a historical high, now comparable to traditional payment systems. USDC stood out in terms of supply growth, increasing 80% month-on-month, with last month's trading volume reaching a historical high of $1.26 trillion.

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

Stablecoins are a type of cryptocurrency designed to maintain a stable value, typically pegged to fiat currencies like the US dollar, and can operate on multiple blockchains.

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

"Structural Tailwinds" Drive Convergent Growth in Both Sectors

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

Token Terminal pointed out: "AI labs and stablecoin issuers are among the companies with the strongest structural tailwinds in the 2020s."

The crypto data service provider further stated that these two fields are at the "convergence of technological, financial, and geopolitical forces," and each force independently brings demand to these two sectors. The report added:

"AI drives improvements in productivity and defense capabilities, while stablecoins provide the financial infrastructure for the global distribution of the US dollar."

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

Explaining the convergence trend of the two sectors, the trader noted that AI requires instant, low-fee payment systems to support its operation, and stablecoins are the "internet money" that achieves this.

Mando CT said: "These trends are interconnected," adding:

"2026 is not just another cycle rotation, but a transformative year moving from speculation to infrastructure."

As reported by Cointelegraph, stablecoins are expected to benefit from AI-driven payment scenarios, facilitating convenient, automated, rule-based transactions between entities, further driving the long-term growth of both fields.