Crypto venture capital funds are increasingly investing in AI, robotics, and other frontier technologies as interest in traditional crypto sectors wanes. Paradigm recently announced a $1.2 billion fund dedicated to these emerging areas, while Framework Ventures closed a $400 million fund last month focusing on AI, robotics, and energy. Haun Ventures also raised a $1 billion fund in May targeting the agent economy. According to Galaxy Research, crypto VCs deployed approximately $4 billion across 355 deals in Q1 2026, marking a 50% decline from the previous quarter. Only eight new funds were closed, the lowest since Q3 2020. Meanwhile, AI attracted about 70% of global startup financing in Q2. The meme coin market cap dropped 21% month-on-month, with retail liquidity shifting towards stocks, commodities, and prediction market products. Dragonfly partner Haseeb Qureshi noted that crypto is evolving more into fintech, moving away from being a purely expert domain.