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

SmartContractAuditor · 2026-02-24T23:27:48+00:00

As AI attracts investment, industry insiders are concerned that the crypto industry may miss opportunities. Dragonfly partner Qureshi believes that encryption has not been replaced and that its core fundamentals remain solid. He pointed out that AI and encryption are fundamentally different and considers the current market to be merely cyclical fluctuations. Investment should be strengthened during downturns, and the integration of AI and encryption will still take time in the future.

SmartContractAuditor

2026-02-24 23:27:48

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Odaily Planet Daily reports: As artificial intelligence continues to attract significant venture capital and market attention, some industry insiders are beginning to worry that the crypto industry may have 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Partner of crypto investment firm Dragonfly, said that such comparisons are misleading; the crypto industry has not been replaced by AI, and shifts in capital flow are simply the result of “normal capitalist operations.”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 impressive 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 funds shifting noticeably toward AI, Qureshi sees this 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.

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

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

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