Temporary blah effect? It is a certainty the summer of 2024 was not good for bitcoin and cryptocurrencieswith the market stagnantor even a slight decrease. According to a recent report from Galaxy DigitalAND lack of interest quite marked by venture capital investment funds (VC) hit the young asset class during the third quarter of this year.
Investments in venture capital fell compared to the previous quarter
Investment company analysts Galaxy Digital just published a report about venture capital fund (Venture capital) specializing in the crypto-asset sector. And the observation is, without much surprise, rather by disappointment in cryptocurrencies over the past quarter.
In the 3rd quarter, venture capital funds invested in total 2.4 billion dollars in crypto projects, which represents a 20% decrease compared to the previous quarter. The activity of venture capitalists, which is ” well below the level of a bull run » (bull market) so far according to experts.
“While the market for liquid cryptoassets has recovered significantly since late 2022 and early 2023, venture capital activity remains well below previous bull markets. (…) The stagnation of venture capital activity is due to a number of factors, in particular the “barbell market” which has seen Bitcoin (and its new ETF) take center stage on the one hand, and on the other the enthusiasm for memecoins, which are difficult to financeable and whose lifespan is questionable. »
Excerpted from a Galaxy Digital report
Venture capitalists have “only” bet $8 billion on cryptocurrencies this year
So the projects ” intermediaries » not between the king of cryptocurrencies and the controversial memecoins can’t find a buyer with venture capital funds, especially in the 3rd quarter of 2024.
This year, however, it should be possible to ” to reach or exceed slightly » Venture capital investment for 2023, with total 8 billion dollars invested in the cryptosphere for the entire first three quarters of 2024.
To that 3E quarter, more specifically, these are large category cryptocurrency projects” Trading/exchange/investment/lending » who received the most capital from venture capital funds. They represent more than 18.4% investments made during these 3 months, in total $462.3 million picked up
With no real surprise, they are US based VC company who invested the most in the industry, with 56% invested amounts. Then they are far behind venture capital funds on stage United Kingdom az Singaporewith or 11 and 7% capital raised by crypto projects (then Hong Kong with 4%).