Active crypto investment firms have dropped 87% from the 2022 peak; Dragonfly partner says crypto VC may be entering its final fund cycle

Odaily Planet Daily News: Dragonfly Managing Partner Haseeb Qureshi stated that as mature networks become harder for startups to challenge, crypto venture capital may ultimately enter a "last fund" phase. He noted that this does not mean the crypto industry will disappear, but rather that scale, liquidity, and network effects will be more concentrated among a few mature platforms.



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



Data from Cryptorank 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 said that if Hyperliquid controls the distribution channels, the related companies are essentially closer to dealers rather than businesses with lasting sustainability.