Traders Use AI as a ‘Second Screen’ to Restore Context During Crypto Volatility

During intense crypto volatility and liquidation cascades, traders increasingly turn to AI tools as a “second screen” to compress information, restore context, and slow impulsive reactions. The author cites MEXC usage data since August 2025 — 2.35 million users, 10.8 million interactions, average daily active users around 93,000 and a single-day peak near 157,000 — with conversational bots seeing the largest share of activity. Rather than pure prediction, traders value AI for fast summaries, noise filtering, and clear signals that reduce cognitive overload during stress. Widespread use of interpretation-focused AI affects market structure: high-quality context may reduce herding, while poor or opaque AI outputs can amplify correlated behavior and systemic risk. The piece argues exchanges will be judged not only on liquidity and fees but also on their ability to orient users under stress. The next phase should emphasize accountability and provenance — showing sources, distinguishing confirmed facts from inference, and avoiding authoritative forecasts that encourage over-delegation. As AI becomes the realtime translation layer for speed, its role in shaping crowd understanding makes governance, monitoring, and transparency critical to market stability.