What DeFi founders could learn from stablecoin success

Dragonfly’s Rob Hadick discussed how the firm is approaching investments in the current market

article-image

Dragonfly general partner Rob Hadick | Ben Solomon Photo LLC for Blockworks

share

This is a segment from the Empire newsletter. To read full editions, subscribe.


We’ve talked a lot about where venture capital stands in crypto right now. I had the chance to catch up with Dragonfly’s Rob Hadick and pick his brain about the industry, VCs and, of course, stablecoins. 

Hadick believes that the backdrop for crypto right now “is as good as it’s been” now that the US is mulling regulation and has been overall friendlier to the industry. Add in Hadick’s optimistic stance on things like stablecoins, and bam! He says he’s “never been more bullish for crypto in the US.”

However, he noted that valuations across crypto are still “very high.”

Dragonfly is slowing down a bit in order to properly pick and choose its spots, he told me. But that makes sense, given that it focuses on Series A and B rounds rather than pre-seed or seed stages (which is a rare find in the industry, though not abnormal given the relative youth of crypto).

“We frankly haven’t done a lot. In fact, Q1 was maybe our slowest quarter ever in terms of new term sheets out, new term sheets signed,” he said. But that’s not necessarily because of the overall macro situation, he was careful to add. It’s partially due to Dragonfly balancing itself out because it was “very aggressive last year.”

It’s also because Dragonfly’s “really sensitive” to the fact that valuations have taken off. “And to us, [that means] just changing the way we’ve invested over the last few years. We do less deals, but we do larger check sizes and take more ownership,” he noted, so that they can partner more with their portfolio companies. 

So far, the firm’s been very busy as the second quarter gets underway. 

“We did one term sheet out of all of Q1, and the first two weeks of Q2, we’ve actually had [a few] term sheets out already at the seed stage,” he said.

One thing I was curious about, admittedly, was Hadick’s thoughts about stablecoins. He told me there’s a lesson buried in the success of stablecoins for the crypto native folks. 

Despite the volatility we’ve seen across DeFi and crypto, stablecoins have managed an upward trajectory — and yes, there’s still a slight correlation between stablecoins and crypto. But the difference is that they’ve managed to hit the nail on the head when it comes to solving real-world issues. 

For DeFi projects looking to succeed in crypto right now, Hadick advises founders to “solve the problems” that folks in the real world are experiencing. 

“Let’s continue to make DeFi rails better than traditional rails,” he said, but it’s about usability at the end of the day and “bringing a better experience for the mass market.”

Now go out there and build.


Get the news in your inbox. Explore Blockworks newsletters:

Tags

Decoding crypto and the markets. Daily, with Byron Gilliam.

Upcoming Events

Old Billingsgate

Mon - Wed, October 13 - 15, 2025

Blockworks’ Digital Asset Summit (DAS) will feature conversations between the builders, allocators, and legislators who will shape the trajectory of the digital asset ecosystem in the US and abroad.

Industry City | Brooklyn, NY

TUES - THURS, JUNE 24 - 26, 2025

Permissionless IV serves as the definitive gathering for crypto’s technical founders, developers, and builders to come together and create the future.If you’re ready to shape the future of crypto, Permissionless IV is where it happens.

Brooklyn, NY

SUN - MON, JUN. 22 - 23, 2025

Blockworks and Cracked Labs are teaming up for the third installment of the Permissionless Hackathon, happening June 22–23, 2025 in Brooklyn, NY. This is a 36-hour IRL builder sprint where developers, designers, and creatives ship real projects solving real problems across […]

recent research

Nillion_DeSci_Report_Template.png

Research

Nillion’s Monad Integration is poised to catalyze the next phase of DeSci’s evolution by eliminating key privacy bottlenecks. This synergy allows researchers, institutions, and DAOs to exchange sensitive data and insights securely while managing governance and payments onchain.

article-image

Celebrating the wisdom of a diamond-handed Bitcoin Legend

article-image

With the success of RWAs and stablecoins, DePINs could onboard the next wave of crypto users

article-image

Is crypto straying too far from things of value?

article-image

Firedancer and Solana ETFs look less significant than before

article-image

The newly passed House bill amplifies that strategic pivot for the Trump administration, from attempting austerity to running the economy hot

article-image

Unable to secure further funding, the game cycled through three different blockchains and at least five different game engines since 2018