The Ongoing Conversation in Crypto
Our journeys take us across various locations, engaging with LPs, fellow investors, and founders. Regardless of where these discussions begin—be it Singapore, Abu Dhabi, London, or beyond—they often lead to a recurring question: Is any of this real?
The Nature of Crypto
This question is understandable. The cryptocurrency realm mirrors our economy and society in complex ways: part financial spectacle, part social experiment, and part collective illusion. For every advancement in cryptography or blockchain technology, numerous speculative avenues emerge. The overall sentiment in the ecosystem has transitioned; it’s now characterized by fatigue rather than outrage or denial.
Cycles of Speculation
In recent years, crypto has experienced a series of speculative narratives: Layer 1 blockchains achieving rapid high valuations, NFTs that shifted from cultural promises to mere cash grabs, and ethereal metaverse real estate—all accompanied by “Play-to-earn” games that fizzled before launch. The latest trend has introduced a multitude of memecoins, expanding the total supply of tokens from 20,000 in 2022 to over 27 million presently, accounting for more than 60% of daily application revenue on Solana. Additionally, platforms offering perpetual futures with exceedingly high leverage are appealing to retail traders.
Emerging Realities Amid Speculation
Amidst the rampant speculation, genuine developments are taking form. Notably, stablecoins are gaining mainstream recognition and demonstrating various real-world applications, with circulation surpassing $280 billion. This growth is prompting traditional financial institutions to react. The stablecoin surge indicates a shift among institutional investors and asset managers toward tangible applications, as the advantages of faster, more cost-effective, and secure transaction systems become apparent.
The Intersection of AI and Blockchain
Furthermore, AI is enhancing the cognitive aspects of this technology. While blockchain provides verifiable records, AI brings adaptability, reasoning, and speed to the equation. Together, these technologies create an innovative framework allowing for products that address real-world challenges—autonomous systems capable of transacting, coordinating, and learning in real-time.
A New Chapter in Innovation
This convergence marks the onset of a new era. Founders with substantial domain expertise are now entering fields like financial infrastructure, global payments, AI computing, media, and telecommunications—vast sectors where the synergy of trustless systems and intelligent automation can unearth new markets. These initiatives are not mere speculative bets; they fundamentally transform how value and data circulate in the economy.
The Future Landscape
The ongoing dialogue around capital availability and interest isn’t the main concern; instead, it revolves around convincing investors to commit to an industry often associated with speculation. Although blockchain’s potential is recognized, there’s a consensus that many projects pursue similar users and design for a limited audience rather than the wider market. This has resulted in a landscape filled with unfulfilled potential, now poised for growth—a realization slowly dawned upon institutional investors.
So, is any of this real? While much remains elusive, it is increasingly becoming tangible. After over a decade in the digital asset space, we see institutional investors recognizing the potential for this technology to impact various sectors beyond cryptocurrency, with transformations in finance, trade, media, and data on the horizon. Thus, we believe that 2026 will witness a significant shift in this industry. Although speculation may continue, the builders who persevere will usher in lasting innovation, and we remain optimistic about the future of this technology.
Pete Najarian is Managing Partner of Raptor Digital, operating at the intersection of digital assets and traditional finance. Joe Bruzzesi is a General Partner at Raptor Digital and serves on the boards of Titan Content and Nirvana Labs. Their views do not necessarily reflect those of Fortune.
