Consumer Crypto Gains Momentum as Venture Capital Shifts Focus

Consumer-facing cryptocurrency applications are experiencing a resurgence as venture capital allocations pivot away from infrastructure projects. Dragonfly's Tom Schmidt observes a "big dispersion" in the sector, with monetizable applications now commanding greater attention. "The applications themselves monetize better. They have more leverage," Schmidt noted, highlighting Hyperliquid's evolution from standalone product to full-stack platform as emblematic of this trend.

This shift mirrors 2014-2018 market dynamics where talent migration preceded major growth cycles. Venture patterns now favor applications capable of launching native tokens and developing their own infrastructure organically. The model aligns with traditional VC wisdom: successful products naturally evolve into platforms when third-party developers create more value than the original creators.