For years, the cryptocurrency sector has presented itself as the upcoming technological upheaval. However, as we observe the rapid advancement of artificial intelligence, it’s time to recognize that AI is the genuine technological revolution of our time, and crypto may end up taking a secondary role instead of being in the spotlight.
This isn’t meant to undermine the significance of the industry or the impressive solutions it has created. I was among those who championed institutional investment in Bitcoin, and I’ve been involved with many companies that are innovating on-chain. Additionally, I hold a Ph.D. in AI. The reality is that the goal should be to develop intelligent systems that address real-world challenges, regardless of whether blockchain technology is incorporated.
When it comes to cryptocurrency, the only segment showing resilience is decentralized finance (DeFi). DeFi represents an objective improvement over traditional finance (TradFi), featuring superior engineering, programmability, and composability. This is aptly summed up by the meme of “Internet Capital Markets.” Innovations like stablecoins and tokenization have demonstrated outstanding product-market fit, standing out as crypto’s most genuine (and arguably only) proof of real value so far. As a result, major institutions like BlackRock, Robinhood, and even crypto-native firms such as Coinbase are actively developing crypto-related products, anticipating clearer regulatory environments. Facilitating instant global payments and settlements, along with more complex financial instruments on-chain, is a logical step forward.
On the other hand, AI is thriving. We have traditional AI focused on large labs, model creators, and LLM providers, along with open-weight AI initiatives like DeepSeek and Mistral, and open-source projects such as Nous. There are also AI applications like Cursor and Lovable, various agents, and developments in robotics. Even the intersection of decentralized AI and crypto is gaining traction. The burgeoning need for AI products and services outstrips that for straightforward crypto applications.
This sentiment is echoed in another meme: “if you’re in crypto, pivot to AI.”
This shift should not surprise us. While cryptocurrencies have struggled to establish mainstream applications beyond speculation and gambling, AI is already enhancing productivity and revolutionizing industries worldwide.
Moreover, a harsh reality for crypto has emerged, magnified by recent trends like memecoin activity and what has been playfully dubbed “crime season.” There is often a disconnect between token valuations and actual technological efficacy. Although decentralized technology is undeniably revolutionary, the value of tokens has frequently been more influenced by their meme potential than by substantial technological advancements. This isn’t necessarily a critique; meme value holds genuine importance. However, it does underscore a fundamental flaw within the crypto sphere as an independent industry.
Nonetheless, this doesn’t spell doom for crypto. Indeed, blockchain and crypto frameworks may become integral components of futuristic AI tech stacks, acting as foundational infrastructure for AI-first applications rather than existing as isolated products.
We could explore possibilities for “Making AI Affordable Again,” which would involve distributed computing power for training and inference, verifiable computation, data provenance, tokenized access to computing resources, decentralized storage of training datasets, and clear reward systems for contributors. Architectures that leverage distributed computing and verification systems have shown their usefulness. But it’s essential that these technologies serve the purpose of AI solutions that address real problems for everyday users who may not care about the underlying tech.
One could envision protocols built on blockchains generating revenue via licensing or usage while being compensated in other tokenized forms like stablecoins—diverging sharply from the current focus on tokens as primary products.
For founders and teams now centered on crypto-native applications, this presents both a challenge and a chance. The challenge lies in broadening horizons beyond the relatively insular crypto ecosystem, often represented by Crypto Twitter and familiar conferences. The opportunity exists in engaging with the authentic technological revolution that AI signifies.
In practice, teams should start thinking on a larger scale. Founders ought to reflect on how AI might revolutionize their target markets and then consider how blockchain could facilitate that change. This necessitates a transformation in how we approach the development and marketing of crypto products.
Instead of beginning with considerations of tokenization, tokenomics, or even blockchains in general, teams should first identify real-world issues that AI can tackle. Only then should we look for ways decentralized technologies can augment AI applications and integrate those components where they truly add value.
Utilize crypto where it makes sense, particularly where it can reduce costs or enhance efficiency, but keep the focus on delivering value through intelligence and automation.
For instance, companies could leverage blockchains to create decentralized marketplaces for essential processes, thereby enhancing accessibility and affordability of AI solutions—Vast.ai is an example of such a company that provides this service for GPUs, while Orchid has been transforming internet privacy and accessibility through decentralized marketplaces for years.
Additionally, agents might employ cryptographic validation or privacy systems to safely operate on our behalf online using our logins, identities, and payment methods, or even private keys and on-chain wallets.
In both scenarios, crypto plays a vital role in enhancing the effectiveness and trustworthiness of AI systems.
The businesses that will prosper in this evolving landscape are those that grasp this relationship. They will either create AI-first products that integrate crypto where it adds real value or establish crypto services designed to elevate AI-driven offerings. The market will not sustain teams that simply apply blockchain indiscriminately.
Ultimately, understanding the connection between crypto and AI is crucial. The future is poised for AI to take center stage, while thoughtfully incorporating crypto when relevant.
For a significant portion of the crypto industry, this represents a crucial turning point and a significant recalibration. We can either hold onto the narrative of crypto as a standalone revolutionary force and speculative tokens as retail instruments or we can accept the role of crypto as a valuable infrastructure supporting AI.
While the latter option may seem less glamorous (and possibly less lucrative for investors), it’s more likely to yield genuine, lasting value and impact.
Accepting this reality promptly will better position us to make meaningful contributions to the ongoing technological transformation. It’s time for the cryptocurrency sector to broaden its vision beyond its own limitations.
If you’re involved in crypto, consider shifting your focus to AI.