- Over the past year, venture capital investments in cryptocurrency companies have experienced a sharp decline of 70%.
- Despite the increase in fund amounts, a decrease in the inclination of Venture Capitals towards cryptocurrency projects has been observed.
- Legal proceedings and bankruptcy issues in the crypto market are affecting venture capital investments, but potential projects like Arbitrum, Aptos
, and Optimism continue to whet the risk appetite.
The Downtrend in Crypto Venture Capital Investments
A Sharp Decline in Investments
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According to data provided by cryptocurrency data provider RootData, there has been a significant decrease in venture capital investments in cryptocurrency companies over the past year. In June of the previous year, venture capital investments amounted to $1.81 billion across 149 rounds. However, when comparing this to the same period this year, venture capital investments amounted to only $520 million across 83 projects.
Decreased Inclination of Venture Capitals
Despite an increase in the amounts of funds, RootData has revealed a decrease in the inclination of Venture Capitals towards cryptocurrency projects. The month of September in the previous year represented a record period with nearly $2 billion in venture capital investments.
Impact of Legal Proceedings and Bankruptcy
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Legal proceedings and bankruptcy issues within the cryptocurrency market are having an impact on venture capital investments. Despite this, potential projects such as Arbitrum, Aptos, and Optimism continue to attract investors and stimulate risk appetite.