Recently, many people have been discussing whether AI is overshadowing crypto, and it’s actually quite interesting. Dragonfly’s partner Qureshi recently shared a perspective that I think is worth examining carefully.

His core logic is this: it’s not that crypto has lost to AI, but rather that the market is making normal capital allocation adjustments. Think about it—most people are using free AI tools right now, but there’s no such thing as a “free” crypto asset. This determines that their business models and user bases are fundamentally different from the start.

Data also shows some interesting points. About 80% of Americans have tried AI tools, but only 15% have held crypto assets—this indicates a fairly broad level of adoption. It suggests that crypto isn’t being marginalized; it’s just following a different adoption curve.

What’s truly worth paying attention to is the performance of stablecoins. They are still maintaining an annual growth rate of around 50%, and the total crypto asset market remains around $2 trillion. Plus, the industry’s high technological leverage means that just a few teams can build projects at a global scale—this shows that the fundamentals aren’t as bleak as they might seem.

Regarding the flow of venture capital into AI, Qureshi believes this isn’t a sign of crypto’s decline but rather a correction after years of excessive funding. Their judgment is that increasing investments during a market downturn is a smarter move, which is why Dragonfly recently announced a new fund of $650 million. This kind of venture-level action reflects institutional understanding of crypto trading and market cycles.

Someone asked if combining AI and crypto could be a savior? His answer is cautious—true large-scale applications might still be several years away, and we shouldn’t expect AI to be some kind of messiah.

To sum up his view: the crypto industry is currently experiencing cyclical fluctuations, not structural decline. Market volatility is normal for long-term development, and there’s no need to be overly pessimistic. This isn’t a disaster; it’s just the market adjusting itself.