Many crypto projects are tied to artificial intelligence, and the growth of AI has increased competition for processing chips. However, Coinbase research analysts David Duong and David Han expect AI and technology-driven efficiency gains to affect crypto in another, rather circuitous way — by dampening inflation. This reduction could keep interest rates lower, increasing the appetite for riskier assets like crypto.

"We believe that the disinflationary impacts of artificial intelligence and technology driven efficiency gains will continue to push this trend of moderating inflation throughout this year," the analysts said in a Friday report.