According to Dragonfly Capital, a San Francisco-based crypto venture fund, the capital that flowed into memecoins last year is expected to pivot toward AI assistants by 2025.

Dragonfly Capitals managing partner, Haseeb Qureshi, shared his predictions in a post on X (formerly Twitter) on the first day of the new year. He stated, Memecoins will continue losing market share to AI assistants. I see this as a shift from financial nihilism to extreme optimism.

Qureshi predicts that the AI assistant craze will likely dominate through 2025 but wont last indefinitely. As more advanced AI products hit the market, interest in social media chatbots may wane. He added, Eventually, this trend will fade. This doesnt spell doom for AI in the long run, but the crypto Twitter community will remain fond of it due to its inherently social nature.

AI Assistants Gain Ground While Memecoins Lose Steam

AI assistants have emerged as one of the hottest trends in the crypto sector, offering innovative tools for investors. Platforms like Aixbt utilize AI to analyze market data and provide forecasts for cryptocurrency traders.

Data from CoinMarketCap reveals a stark contrast in trading activity. Over the past 24 hours, the trading volume of memecoins plummeted by nearly 21.5%, while tokens associated with AI and related technologies saw a 7.95% increase.

Aligning with these trends, the market capitalization of AI-related tokens has risen by 1.66% in the past 30 days, whereas memecoins have seen a 17.7% decline during the same period.

Growing Risks Associated with AI Assistants

While the markets pivot to AI assistants showcases innovation, it also introduces new cybersecurity challenges. Qureshi warned, Current AI assistants can be easily manipulated to make outrageous statements that damage brands or to install spyware aimed at stealing all available resources.

Related Reading: 20 Altcoins to Watch in 2025

Despite the promising capabilities of AI platforms like Aixbt, which excel at aggregating data from diverse projects, Qureshi emphasized the uncertainty surrounding the long-term prospects of this field. By the next generation of AI assistants, perhaps Aixbt will hallucinate less, dive deeper, and make smarter inferences. But how much of this will users notice? Probably not much, he speculated.

A Sudden Shift by 2026

Qureshi predicts a dramatic market shift in 2026, stating, Crypto takes time to grow bored of flashy trends. He added, Chatbots will become so ubiquitous that enthusiasm will wane, and sentiment will reverse entirely.

Last week, the top-performing AI tokens included Virtuals Protocol (VIRTUALS) with a 57.3% gain, followed by Bittensor (TAO) at 10.6% and Theta Network (THETA) at 6.11%.

Another crypto analyst, Mckenna, pointed out on X that VIRTUALS has surged by 13,000% in a year, commenting, Im certain well see plenty of AI opportunities emerge in 2025.

Similarly, Bitwise CEO Hunter Horsley drew parallels between the rise of AI assistants and the emergence of corporate entities two centuries ago. I think this perfectly mirrors the rise of corporations in the 19th century: entities that can make contracts, hire people, own assets, and outlive humans, he remarked.

As the crypto market evolves, the focus on AI assistants reflects a broader shift in priorities and innovations. While memecoins may lose their appeal, AI-driven solutions are gaining traction, promising new opportunities and challenges alike. However, investors should exercise caution and conduct thorough research before making decisions, as every investment carries inherent risks.