Why VC firm Dragonfly says the bulk of investments is in payments and stablecoins

Stablecoin & Payment Trends - Investments in payments and stablecoin companies are increasing, driven by the Genius Act and institutional adoption [1] - Institutional adoption of stablecoins for cross-border payments has grown significantly, from near zero to over $100 billion last year [1] - Fortune 500 companies are showing interest in using stablecoins for treasury management solutions [1] - Stablecoin and payments deals accounted for nearly 8% of all deals this year, the highest percentage since 2021, representing about 14% of the total amount raised [4] - B2B cross-border payments are a fast-growing use case for stablecoins, with an estimated $100 billion in volume last year [8] - Cross-border B2B payments in stablecoins doubled from May to August for a subset of 30 companies, reaching approximately $6 billion annually, suggesting a potential total of over $200 billion [10] - Emerging markets are increasingly using stablecoin-backed cards and neobanks [11][12] - Stablecoins are being used for approximately 10% of all cross-border peer-to-peer remittances between the US and India, and about 8% between the US and Mexico [13] Emerging Crypto VC Trends - Prediction markets are gaining significant interest, with companies like Poly Market experiencing substantial growth [15][16] - Broad tokenization, including tokenization of equities and real-world assets, is attracting interest as a way to move value more efficiently [19] - Digital asset treasuries (DATs) are experiencing increased investment and interest, particularly in the last four months [21]