Dragonfly partner says crypto VC could vanish by 2030

The statement carries weight because Dragonfly just closed its Fund IV in February 2026, raising $650 million. That is not the fundraising profile of a firm that thinks the sky is falling tomorrow. Qureshi appears to view the capital raise as evidence of consolidation rather than contradiction. The big funds are getting bigger, he said, while smaller, less differentiated crypto VCs struggle to raise or deploy capital effectively.

The shift Qureshi describes is not about money leaving crypto entirely. It is about money changing form and destination. Capital that once chased layer-1 protocols and speculative token plays is increasingly moving toward AI integration, stablecoins, privacy infrastructure, tokenization of real-world assets, and fintech plumbing, he said.

If the prediction plays out, the implications for early-stage crypto founders are real. If dedicated crypto funds continue consolidating or shutting down, founders will need to pitch generalist VCs who evaluate deals on cash flow projections and unit economics rather than tokenomics and community engagement, Qureshi said.

Dragonfly's own deployment of that $650 million over the next 12 to 18 months will reveal whether its managing partner truly believes the pure-play crypto thesis is fading.