In 2023, crypto funding saw a significant drop of 68%. It reached $10.6 billion. However, venture capital giants share optimistic outlooks for 2024.
Crypto financing 2023: A year full of challenges
The year 2023 has been a time of uncertainty for crypto financing. It was especially marked by a significant drop in crypto investments. The figures show a drop of more than 60%, which represents almost $10.6 billion.
Many factors contributed to this fall:
- historically high interest rates,
- the rapid growth of AI (thereby diverting attention from cryptocurrencies),
- crises involving major platforms like FTX, Celsius and BlockFi…
Another catalyst: regulatory repression which creates a complex environment for crypto market players.
Despite challenges, venture capital firms speak out about a bright future
Despite the challenges of 2023, venture capital giants express cautious optimism about the future of crypto financing in 2024. For example, Coinbase Ventures is becoming more and more optimistic due to:
- the increasing clarity of crypto regulations,
- the maturation of the protocol infrastructure,
- institutional participation,
- innovation.
Although vigilant, Galaxy Ventures remains committed to investing in early-stage crypto projects. In fact, she anticipates possible consolidation in the sectorarguing that blockspaces and stablecoins are attractive areas for crypto investments.
Hong Kong-based venture capital firm Animoca Brands is also very optimistic. She even predicts a “considerably healthier” financing environment in 2024. According to her, the rebound in the crypto market is the start of a new bullish cycle.
For its part, Polygon Ventures anticipates a resumption of web3 financing in 2024, highlighting the resilient activity of developers. According to her, consumer-oriented use cases and tokenization should attract institutional investors.
In total, 20 venture capital companies shared their crypto financing prospects for 2024. At the heart of their forecasts, we find innovation, the adoption of Web3 as well as major opportunities.
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