Dragonfly: The Crypto Industry Has Not Lost to AI, Capital Shift Is Just a Normal Market Adjustment

Odaily News As artificial intelligence continues to attract massive venture capital and market attention, some industry insiders have begun to worry whether the crypto industry has missed its own "ChatGPT moment." In response, Haseeb Qureshi, Managing Partner of crypto investment firm Dragonfly, stated that this comparison itself is a misunderstanding. The crypto industry has not been replaced by AI, and the shift in capital flow is merely "capitalism working as intended."

Qureshi pointed out that AI and crypto products are fundamentally different. Most AI users today utilize free services, whereas crypto assets do not have a "free tier." He noted that approximately 80% of Americans have tried AI tools, while about 15% have held crypto assets, which in itself constitutes mass adoption.

He believes the core fundamentals of the crypto industry remain solid, with stablecoin growth being particularly notable, maintaining an annual supply growth rate of around 50%. Despite a cooling market sentiment, the total crypto asset market cap remains at approximately $2 trillion. The industry benefits from high technological leverage, allowing small teams to build projects with global scale.

Regarding the noticeable shift of venture capital towards the AI sector, Qureshi believes this does not signal the decline of the crypto industry but rather a market correction following the excessive funding of previous years. He stated that increasing investment during market downturns is a more rational strategy, a judgment upon which Dragonfly recently announced the launch of a new $650 million fund.

On the prospects of AI-crypto integration, Qureshi maintains a cautious stance. He believes it will still take several years for AI agents to use crypto technology on a large scale, and AI will not be the "savior" for the crypto industry's recovery.

Qureshi concluded that the crypto industry is currently facing more of a cyclical fluctuation than a structural decline. Market volatility is a normal part of long-term development, and there is "no need for excessive pessimism; this is not a disaster."