The intersection of crypto and artificial intelligence (AI) has entered a quieter, more selective phase, according to two prominent venture capitalists.

Anand Iyer of Canonical Crypto and Kelvin Koh of Spartan Group described the current climate as a post-hype moment for decentralized AI protocols, with capital and talent shifting toward more focused, utility-driven applications during Consensus Hong Kong 2026.

“I think we’re in the trough right now,” said Iyer, whose San Francisco-based firm backs early-stage infrastructure and applications built on decentralized networks. “We went through a frothy period. Now it’s about figuring out where the real strength lies.”

Both Iyer and Koh criticized what they see as overinvestment in…