Investors Turn to AI and Tokenization as Traditional Markets Wane

The crypto market's recent struggles highlight a broader shift in private capital formation, as investors increasingly turn to AI-driven platforms and tokenized assets to navigate volatile traditional markets. While major exchange listings once triggered sharp price surges, recent data shows diminishing returns, with tokens like SEI and 2Z dropping 8% and 5% respectively within 24 hours of being listed on OKX in November 2025. This trend underscores a growing skepticism toward conventional market mechanisms and a pivot toward alternative models that leverage artificial intelligence and blockchain technology to enhance liquidity and transparency.

The rise of AI-powered platforms is reshaping how private markets operate. A 2025 survey by KeyBanc Capital Markets and Sapphire Ventures revealed that private SaaS companies are balancing growth and profitability through AI adoption, driving productivity gains while pursuing expansion. Similarly, Better Home & Finance's Q3 2025 earnings highlighted AI-driven underwriting for home equity loans, enabling access for underserved small business owners and expanding the $35 trillion home equity market. These examples illustrate how AI is not only optimizing operations but also democratizing access to capital, a critical advantage over traditional venture capital models that often prioritize institutional investors.

Tokenization is further disrupting traditional paradigms. Artprice's launch of Artprice News, an AI-driven news agency, showcases how historical data can be tokenized to create new market insights. By integrating 18 million annotated artworks into its algorithms, Artprice is generating cross-cutting trends previously invisible to conventional analysts. This mirrors the digital therapeutics sector, where AI-powered platforms are projected to grow at a 22.4% CAGR, reaching $61.29 billion by 2034 by personalizing treatments and leveraging remote monitoring. Such innovations suggest tokenization's potential to unlock value in traditionally illiquid assets, from art to healthcare solutions.

Traditional venture investing, meanwhile, faces challenges in a market where even high-profile listings fail to sustain momentum. The November 2025 listing of Plasma (XPL) and Toncoin (TON) on Coinbase saw initial gains but ended the day down 12% and 6.4%, respectively. This volatility reflects broader investor caution, particularly as macroeconomic pressures persist. In contrast, tokenized platforms offer programmable liquidity and fractional ownership, addressing some of the barriers that have historically limited private market participation.

The future of private capital formation may lie in hybrid models that combine AI's analytical power with blockchain's transparency. For instance, Better Home & Finance's AI-driven HELOC approvals demonstrate how automation can reduce risk while expanding market reach. Similarly, the SaaS industry's shift toward AI-optimized operations has enabled private companies to scale profitably, a feat that traditional VCs often struggle to replicate. These trends suggest that the next wave of market innovation will prioritize technology not just as a tool but as a foundational element of capital allocation.