Venture capitalists in the cryptocurrency space say investments in artificial intelligence have entered a post-hype phase, focusing on practical applications rather than broad-scale efforts. At Consensus Hong Kong 2026, investors Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group highlighted a shift toward utility-driven AI tools amid declining crypto prices.
The intersection of cryptocurrency and artificial intelligence is experiencing a quieter period, according to comments from two prominent venture investors at Consensus Hong Kong 2026. These remarks, reported by CoinDesk on February 11, 2026, reflect a broader cooling in enthusiasm for decentralized AI protocols after a period of intense speculation.
Anand Iyer, from Canonical Crypto, which focuses on early-stage infrastructure and applications on decentralized networks, described the current landscape as a 'trough.' 'I think we’re in the trough right now,' Iyer said. 'We went through a frothy period. Now it’s about figuring out where the real strength lies.' He and Kelvin Koh of Spartan Group expressed skepticism toward heavy investments in GPU marketplaces and attempts to build decentralized versions of large AI models, such as those from OpenAI or Anthropic.
Koh noted the vast difference in capital requirements, stating that the funding needed is 'night and day' compared to what's available in the crypto sector. Instead, they see promise in AI tools that target specific problems, attracting both capital and talent to more focused initiatives.
This perspective comes amid a reported shift in crypto venture capital toward areas like stablecoin infrastructure, prediction markets, FinTech, and AI, following a two-day-earlier announcement. The change is driven by a sharp drop in digital asset prices, with bitcoin losing nearly half its value from its October peak and altcoins declining up to 70% over the past year. Traditional venture funds are increasingly competing in niches like prediction markets and stablecoins as Wall Street shows greater interest.
Separately, analysis of February's AI funding shows venture capital continuing to flow, but with emphasis on the technology's durability and economics rather than mere expansion. Several major investments targeted foundational improvements to make AI systems faster, cheaper, and more trustworthy at scale.