TLDR:
- Venture capital investment in crypto companies rose to $2.4 billion in the first quarter of 2024.
- Investor interest in crypto is showing signs of returning after a long decline.
Full Article:
Global venture capital investment in crypto companies rose to $2.4 billion in the first three months of 2024, marking a positive sign of investor interest returning after a long decline. Data from PitchBook revealed that this surge follows seven consecutive quarters of declining volumes, with just $1.7 billion in the last quarter of 2023.
PitchBook senior analyst Robert Le highlighted that the crypto industry still has ample room for growth and innovation, indicating optimism for continued investment throughout the year, barring any major market downturns. The industry saw explosive growth in 2020 and 2021 driven by low interest rates and high-risk appetite.
However, a series of bankruptcies at major crypto firms in 2022 caused investor anxiety and led to a significant drop in investment volumes. Notably, U.S. regulators’ approval of exchange-traded funds tracking bitcoin’s spot price at the start of 2024 helped boost confidence in the crypto market. Bitcoin has also shown signs of recovery, hitting an all-time high of $73,803.25 in March 2024.
Despite the positive trend, the crypto industry remains in its early stages, and caution is advised due to its volatile nature. Investors are hopeful for continued growth and innovation in the market as interest gradually returns.
