Ever since AI supplanted crypto as the shiny new toy in Silicon Valley, there's been no shortage of jokes about workers jumping ship. New data from prominent venture capital firm Andreessen Horowitz (commonly referred to as a16z) shows that the truth is more complicated.

In its annual state of crypto report released on Wednesday, a16z found that since the launch of ChatGPT in November 2022, around 1,000 workers left the crypto industry for AI startups. But, in that same time period, blockchain companies gained the same number of employees from other industries, including traditional finance and tech.

"People forget that the collapse of FTX and the launch of ChatGPT were less than a month apart," said Daren Matsuoka, a partner on the crypto investment team at a16z, in an interview with Fortune. "There was a period of time in the crypto industry where it was looking very negative for crypto and very promising for AI."

Today, the outlook for crypto is markedly different than it was in late 2022. AI continues to drive record investment, but crypto has mounted a comeback. The market cap of all cryptocurrencies in circulation has surpassed $4 trillion, and Bitcoin's value hit new all-time highs this year. The resurgence comes as the Trump administration embraced the sector, pushing for a regulatory thaw and championing legislation in Congress to establish oversight for stablecoins and exchanges. Top financial institutions like JPMorgan, BlackRock, and Fidelity are all expanding their crypto offerings.

In its report, a16z found that workers coming into the crypto industry are tending to join from a traditional finance and consulting background, or from emerging fintech companies, another sign that the line is blurring between traditional finance and crypto.

"We started doing this report four years ago, when crypto was in its teenage years," Matsuoka added. "But now the world takes crypto seriously... the industry just got a lot more mature."

Crypto investing powerhouse

This year's crypto annual crypto report is the fourth of its kind to be published by a16z, which spun out its crypto arm in 2018. Following the spin-off, the entity known as a16z crypto raised staggering funds during an earlier boom era for blockchain, including a $2.2 billion vehicle in 2021 and a $4.5 billion fund in 2022. Led by Chris Dixon, a16z crypto has invested in top startups such as Worldcoin, Uniswap, and Phantom.

While the soaring AI industry has dominated tech headlines, a16z crypto's new report shows that crypto users' desire for privacy is becoming more pronounced. The firm cites Google searches related to crypto privacy surging in 2025.

"It's a common trope in the industry for people to say users don't really care about privacy," said Eddy Lazzarin, a16z crypto's chief technology officer, in an interview with Fortune. "I personally don't think that's true. I think that people either do or will care."