VC Investment in Crypto Industry Falls to Lowest Level in a Year
The cryptocurrency market has entered a long bearish phase, and one of the factors that clearly reflects the fears of investors is the sharp reduction in investments in blockchain-related projects.
Venture capital investments in this business segment has fallen to its lowest level since 2021.
According to Bloomberg, in the first quarter, venture funds invested a record $9.85 billion in crypto business, and in the second quarter this amount fell to $6.76 billion. According to the results of the third quarter, the amount of capital investment might be even lower.
Investors are not too interested in investing in infrastructure development at the moment due to the fact that they fear the bearish phase in the market will drag on.
The loss of attractiveness of the crypto business is partially due to the collapse of the Terra ecosystem and problems at Celsius and Babel Finance, as well as large-scale layoffs at Gemini, Crypto.com and other exchanges.
