Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group painted the current environment as a post-hype phase for decentralized AI protocols, according to the report. Capital and talent are showing greater interest in more focused, utility-driven applications.

“I think we’re in the trough right now,” said Iyer, whose company invests in early-stage infrastructure and applications built on decentralized networks, per the report. “We went through a frothy period. Now it’s about figuring out where the real…