Dragonfly: The crypto industry has not lost to AI; the capital shift is just a normal market adjustment.

Odaily Planet Daily reports that as artificial intelligence continues to attract significant venture capital and market attention, some industry insiders are beginning to worry that the crypto industry has missed its own “ChatGPT moment.” In response, Haseeb Qureshi, Managing Partner of crypto investment firm Dragonfly, said that such comparisons are misleading; the crypto industry has not been replaced by AI, and shifts in capital flow are simply the result of “normal capitalist operations.”

Qureshi pointed out that AI and crypto products are fundamentally different. Currently, most AI users are using free services, whereas there is no “free tier” for crypto assets. He noted that about 80% of Americans have tried AI tools, while around 15% have held crypto assets, which already indicates mainstream adoption.

He believes that the core fundamentals of the crypto industry remain solid, especially with the strong growth of stablecoins, whose supply still maintains an annual growth rate of about 50%. Despite some cooling in market sentiment, the overall size of crypto assets is still around $2 trillion. The industry has high technological leverage, allowing small teams to build projects on a global scale.

Regarding the phenomenon of venture capital shifting noticeably toward AI, Qureshi sees it not as a sign of crypto industry decline but as a market correction after excessive funding in previous years. He stated that increasing investments during market downturns is actually a more rational strategy, and Dragonfly’s recent announcement of a new $650 million fund is based on this judgment.

As for the prospects of combining AI and crypto, Qureshi remains cautious. He believes it will take several years before AI agents can widely use crypto technology, and AI will not be the “savior” for the crypto industry’s revival.

Qureshi summarized that the crypto industry is currently facing more cyclical fluctuations rather than structural decline. Market volatility is normal in long-term development, and “there’s no need to be overly pessimistic; this is not a disaster.”