Active crypto investment firms down 87% from 2022 peak; Dragonfly partner says crypto VC may be seeing its last funds

Odaily Odaily Planet Daily News Dragonfly managing partner Haseeb Qureshi said that as mature networks become harder for startups to challenge, crypto venture capital may eventually enter a "last funds" phase. He noted this does not mean the crypto industry is disappearing, but rather that scale, liquidity, and network effects are increasingly concentrated among a few mature platforms.



Qureshi stated that by 2030, most important companies in the crypto space may already be established. While large platforms will continue to grow, the room for new entrants to disrupt the market will be limited. He believes investors may underestimate the possibility that continued growth in the crypto market will not necessarily translate into investable startups.



Cryptorank data shows that as of July 28, only 150 independent venture capital firms participated in crypto funding rounds in July, the lowest level since November 2020 and down from a peak of 1,177 active investment firms in May 2022.



Qureshi is cautious about startups built around single financial products on platforms like Hyperliquid. He stated that if Hyperliquid controls the distribution channels, such companies are essentially closer to dealers than to businesses with lasting durability.