The year 2023 has been generally difficult for stakeholders in the crypto industry, particularly in terms of financing. Regardless, with the resurgence of cryptos and the prospects looming on the horizon, many industry players believe that things will improve in 2024. Not everyone shares this optimism, however. .
Optimists about funding the crypto market in 2024
In 2023, the crypto financing landscape has faced formidable challenges. It suffered a staggering 68% decline to $10.6 billion, from $33.2 billion the year before.
Several elements contributed to this situation. Contributing factors include high interest rates, the expansion of attention-diverting AI, regulatory challenges and incidences of crypto collapses involving FTX, Celsius and BlockFi.
However, despite this bleak state of affairs, many investors in the crypto industry believe that the situation should improve in 2024. This is the case of Coinbase Ventures, Polygon Ventures, NGC Ventures, Multicoin Capital, HashKey Capital and Animoca Brands.
All of its crypto finance players say somewhat the same thing. Namely that 2024 would be brilliant for the industry. This, thanks, among other things, to regulatory clarity, institutional participation and innovation in user engagement.
The position of the pessimists
This displayed optimism, some crypto investors do not share it. Among them, Mike Novogratz’s Galaxy Ventures. The latter foresees a difficult and low-key crypto financing landscape in 2024.
Successful companies could face flat or declining fundraising, he said. This is because the community of partners would be limited, because it is over-indexed on illiquid investments.
Without necessarily espousing this point of view, Shima Capital maintains an optimistic, but cautious, opinion. This investor has confidence in the long-term potential of the crypto market. However, he recognizes the risks inherent in this industry.
Ultimately, despite the challenges of 2023, major players in the venture capital space are forecasting a positive trajectory for crypto funding in 2024. An outlook that echoes the projections of several crypto-related companies like VanEck, Bitwise, Bitget and Messari. Everyone sees the industry breaking records in 2024.
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