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a16z’s Guy Wuollet says crypto is leaving hoodie phase for ‘collared shirt’ decade

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a16z’s Guy Wuollet says crypto is leaving hoodie phase for ‘collared shirt’ decade

a16z crypto partner Guy Wuollet says crypto is entering its “collared shirt” era, as the firm doubles down on a 10‑year infrastructure bet even while high‑profile partners exit amid a new $2b fundraise.

Summary

  • a16z crypto partners have publicly reiterated a 10‑plus‑year investing horizon for the sector, comparing today’s market to the pre‑internet and pre‑AI groundwork phase.
  • At the same time, named partners including Arianna Simpson and Kofi Ampadu are exiting or shifting roles, underscoring how venture talent is rotating as the industry matures.
  • The crypto team is now raising roughly a $2 billion fifth fund, signaling that institutional LPs still see blockchains, tokenization, and AI‑crypto convergence as core long‑term themes.

Guy Wuollet, a16z crypto partner has published a new essay arguing that “finance is not separate from a larger vision; it is part of it,” describing blockchains as foundational infrastructure rather than a speculative sideshow. “At a16z and a16z crypto, we are looking long‑term: our fund structure is designed for a cycle of over 10 years because building new industries takes time,” the partner wrote, likening the current phase to laying railways before new categories of applications can run. The piece stressed that many breakthrough apps will only emerge once wallets, identities, liquidity, and trust mechanisms are mature, echoing a16z research that compares crypto’s timeline to the decades of work behind modern AI.

a16z crypto doubles down on long‑term thesis

That message is consistent with comments from a16z crypto general partner Chris Dixon, who recently said blockchain is “the next foundational infrastructure of the internet,” and that the industry is in a long “foundation‑building phase” similar to the 1943 neural‑net paper for today’s AI boom. Dixon has also noted that the firm has held onto about 95% of its historically invested assets because, in his words, “selling high‑quality assets too early is the worst decision in venture capital.” The stance underpins a16z crypto’s push into themes like stablecoins, tokenization, privacy, and prediction markets, laid out in a “Big Ideas 2026” roadmap that frames crypto as the plumbing for an internet where value moves as quickly as data.

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The long‑term rhetoric comes as some a16z‑linked partners adjust their own career paths. Foresight News reported that Arianna Simpson, a general partner at a16z crypto, has “announced her resignation,” while fellow partner Kofi Ampadu is also leaving after the firm paused its Talent x Opportunity (TxO) program; a memo obtained by TechCrunch shows Ampadu telling staff that “closing my a16z chapter” followed four years of backing out‑of‑network founders. Those moves reflect a broader reshuffling inside top crypto VCs, as funds rebalance between seed bets, growth‑stage deals, and new AI‑crypto hybrids.

Despite the personnel churn, a16z crypto itself is pressing ahead with a fresh war chest. According to a report citing multiple insiders, the firm’s blockchain arm is targeting around $2 billion for its fifth dedicated crypto fund, on top of a broader $15 billion multistrategy raise across infrastructure, applications, and growth‑stage vehicles. Since launching its inaugural $300 million crypto fund in 2018 — in the wake of Bitcoin’s first run to $20,000 — a16z has grown that platform into a $4.5 billion vehicle and now backs projects from exchanges and DeFi protocols to gaming and NFT studios.

For builders, the message is mixed but ultimately constructive: competition for a16z checks is intensifying, even as the capital pool itself grows. On one hand, the departure of familiar faces like Simpson and Ampadu shows that even marquee crypto franchises are not immune to internal strategy shifts; on the other, a $2 billion target fund and a stated commitment to hold 95% of positions signal that LPs and partners remain aligned on treating crypto as a decade‑plus play. The firm’s research arm continues to push for clearer token rules and large‑scale DeFi adoption, arguing that “great endeavors take time” and that today’s messy, volatile years are the “groundwork” phase before a sharp inflection in usage.

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Crypto World

Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens

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Ethereum Price Prediction

Crypto analyst Ansem argues that Ethereum (ETH) is in a “worse spot” in 2026 than it was in 2023, pointing to a thesis he says has been eroding for years.

His bearish take drew rebuttals from some members of the community. Meanwhile, on-chain activity and technical indicators elsewhere on the network flash bullish signals.

Ansem Lists Cracks in the ETH Thesis

Ansem argues that Solana (SOL) has dominated retail activity this cycle. Hyperliquid has taken the lead in perpetual futures trading, while rollups have failed to gain traction.

He also noted that Vitalik Buterin “publicly abandoned” the general-use rollup thesis. The ongoing Aave (AAVE) situation around the KelpDAO rsETH exploit, Ansem said, is a mark on  Ethereum’s core value proposition of “safety + security of defi & insto interest.

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“ETH thesis has been weakening consistently for years,” the analyst wrote. ETH in 2026 is in a worse spot than it was in 2023, amplified by AI doing extremely well & tech stocks being much more favorable investments with real revenues / emerging narratives / increasing momentum, ETH is a $300B asset with a ton of overhang from Tom Lee topblasting + complacent ETH holders sitting idle in defi protocols.”

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Technically, the analyst noted that ETH remains in a sustained downtrend after failing to break multi-year resistance. He projected that the second-largest cryptocurrency could slip to 2025 lows near $1,300 and to the bear-market lows from 2022.

“Tight invalidation 2377 assuming problems worsen if you want to play it loose assuming other risk assets continues doing well & drags it up probably somewhere around 2700/2800 invalidation fundamentals wise would want to see breakout activity from some new vertical,” the post read.

Ethereum Price Prediction
Ethereum Price Prediction. Source: X/Ansem

Community Members Push Back

The take triggered notable pushback. Ryan Berckmans accused Ansem of not understanding fundamentals. Leo Lanza went further, sharply dismissing the analyst’s bearish case on X.

Another user pointed to a 56% drop in the SOL/ETH pair this cycle.

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“Soleth is down 56% after being up 12x+ *this cycle* because one guy decided to buy 5% of the eth supply after it had underperformed all cycle. idk why you guys act like i dont also bearpost solana i havent posted anything bullish about sol in over a year,” Ansem replied.

Not everyone shares the bearish view on Ethereum. BeInCrypto recently highlighted that network activity remains strong, while technical indicators like the Rainbow Chart and MACD are also flashing bullish signals.

With macro and geopolitical uncertainty still in play, the question is whether ETH slides further this year or stages a renewed rally.

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The post Ansem Says Ethereum Is in a Worse Spot Than 2023 as Thesis Weakens appeared first on BeInCrypto.

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

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Aave’s TVL Falls $8B After $293M Kelp DAO Hack

Total value locked on decentralized lending protocol Aave dropped by nearly $8 billion over the weekend after hackers behind the $293 million Kelp DAO exploit borrowed funds on Aave, leaving roughly $195 million in “bad debt” on the protocol and triggering withdrawals.

Data from DeFiLlama shows that Aave’s TVL fell from about $26.4 billion to $18.6 billion by Sunday, losing the top spot as the largest DeFi protocol. 

Aave v3’s lending pools for USDt (USDT) and USDC (USDC) are now at 100% utilization, meaning that more than $5.1 billion worth of stablecoins cannot be withdrawn until new liquidity arrives or borrows are repaid. 

$2,540 is available to be withdrawn from the $2.87 billion USDT pool on Aave v3 at the time of writing. Source: Aave

Aave’s TVL fall shows how rapidly risk from a single security incident can spread throughout the broader, interconnected DeFi lending market, potentially leading to a severe liquidity crisis.

The incident began on Saturday when hackers stole 116,500 Kelp DAO Restaked ETH (rsETH) tokens worth about $293 million from Kelp DAO’s LayerZero-powered bridge and used them as collateral on Aave v3 to borrow wrapped Ether (wETH).

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Crypto analytics platform Lookonchain said the move created about $195 million in “bad debt” on Aave, which contributed to the Aave (AAVE) token tanking nearly 20% from $112 on Saturday at 6:00 pm UTC to $89.5 about 25 hours later. 

Lookonchain noted that some of the largest crypto whales to withdraw funds from Aave were the MEXC crypto exchange and Abraxas Capital at $431 million and $392 million, respectively.

Source: Grvt

Several crypto networks and protocols tied to rsETH or the LayerZero bridge have paused use of the bridge until the problem is resolved, including DeFi platform Curve Finance, stablecoin issuer Ethena and BitGo’s Wrapped Bitcoin (WBTC).

Aave has frozen several rsETH, wETH markets

Shortly after the Kelp DAO exploit, Aave said it froze the rsETH markets on both Aave v3 and v4 to prevent any suspicious borrowing and later stated that rsETH on Ethereum mainnet remains fully backed by underlying assets.

WETH reserves also remain frozen on Ethereum, Arbitrum, Base, Mantle and Linea, Aave said.

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This incident marks the first significant stress test of Aave’s “Umbrella” security model, which was introduced in June 2025 to provide automated protection against protocol bad debt while enabling users to earn rewards.

Related: Aave DAO backs V4 mainnet plan in near-unanimous vote

Earlier this month, the Bank of Canada found that Aave avoided bad debt in its v3 market by using overcollateralization, automated liquidations and other strategies that shifted risk to borrowers.

In comments to Cointelegraph, Aave defended its liquidation-based model, framing it as a core safety mechanism that protects lenders while limiting downside for borrowers.

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It comes as Aave parted ways with its longest-standing DeFi risk service provider, Chaos Labs, on April 6, following disagreements over the direction of Aave v4 and budget constraints.

Magazine: Are DeFi devs liable for the illegal activity of others on their platforms?