Dragonfly Predictions for AI and Crypto in 2025

Dragonfly Managing Partner Haseeb Qureshi predicts that the “AI agent” craze will dominate this year due to its social aspect, though he believes its novelty will fade over time.

Qureshi explains that these entities are not true agents but more akin to chatbots tied to memecoins, mainly operated by humans. He cites Freysa as an example of genuine autonomous AI.

Despite his skepticism, he anticipates the trend of chatbots overtaking human crypto influencers, with memecoins losing ground to “AI agent” tokens. By 2026, he expects chatbots to become so prevalent that people may turn against them, resulting in a backlash favoring human creators. He predicts that future chatbots will monetize similarly to human key opinion leaders (KOLs) through sponsorships and affiliate links, leading to accusations of chatbots masquerading as humans and potential “AI-unmasking scandals.”

Long-term, true disruption by AI will arise from software engineering agents rather than social or trading layers. Qureshi suggests that AI will scale existing trading firms, making markets more efficient and leaving little opportunity for average traders.

Moreover, impactful AI agents may bring down software prices significantly, enabling startups to launch applications with minimal investment. The number of on-chain applications and experimental projects is expected to surge, signalling a renaissance in the software-driven industry.

On the relationship between AI and crypto, Qureshi believes that autonomous agents could leverage crypto for transactions, especially if stablecoin regulations become more permissive.

An Explosion in Stablecoin Use

He foresees stablecoin legislation to pass in the U.S. this year, resulting in increased stablecoin usage among small to medium-sized enterprises for instant settlements. He also predicts bank-issued stablecoins to be announced by the year’s end, although Tether will likely maintain its dominance. A shift in the risk appetite of Fortune 100 companies and tech startups is expected under a potential Trump administration.

‘One Chain to Rule Them All is Dead’

Qureshi’s other predictions for 2025 include a change in token launch strategies, shifting from vanity metrics to clear metrics using point-based rewards and traditional crowdsales.

He suggests the distinction between Layer 1 and Layer 2 chains is blurring, resulting in an overcrowded landscape ripe for consolidation, prioritizing niches and user loyalty over technical excellence. Despite the recent strength of SVM and Move communities, he anticipates EVM market share to grow, with innovations from Base and future projects like Monad and Berachain.

Additionally, hyperliquid chains tailored for specific applications are expected to flourish, signaling the end of the ambition for a single dominative blockchain.