It’s no secret that the world of cryptocurrency has seen its fair share of ups and downs. However, the recent resurgence of the crypto market is turning heads and raising questions about the future of venture capital in the industry.
Key Takeaway
The recent resurgence of the crypto market is at odds with the declining interest of venture capitalists in web3 startups, prompting questions about the future of funding in the industry.
A Promising Rebound
After a prolonged period of stagnation, the crypto market is showing signs of life. Spot trading volumes have reached a 12-month high, the total value of crypto tokens has seen significant appreciation, and even NFTs are making a comeback. The launch of spot bitcoin ETFs in the US further underscores the growing acceptance of crypto in the mainstream market.
VC Interest in Question
Despite these positive developments, venture capitalists’ interest in web3 startups has continued to decline, raising concerns about the future of funding in the crypto space. The decline in VC investment in Q4 2023, following a severely depressed third-quarter figure, has left many wondering when VCs will reignite their interest in the industry.
