TLDR:
- Crypto VC funding jumped 15% in August 2024 to $633 million.
- Venture capital investments in blockchain infrastructure are on the rise.
Despite a sluggish summer in the crypto market, DeFiLlama data shows that crypto VC funding surged to $633 million in August, a 15% increase from July. Luca Prosperi, CEO of M^0 Labs, expects continued investment in AI infrastructure, middleware, and applications in the evolving technology landscape. The focus of VC funding is shifting towards blockchain infrastructure development firms, with a rise in interest indicating its essential role in advancing the technology. The recent spike in investment highlights a possible shift in VC interest back to the cryptocurrency sector after losing traction to AI startups earlier in the summer.
As Ganesh Swami, CEO of Covalent, emphasizes the need for more practical applications to draw VC interest towards the application layer, the approval of the first Bitcoin and Ether-based exchange-traded funds (ETFs) could serve as a catalyst for renewed VC interest in the blockchain space. While AI-related startups gained attention earlier, the tide seems to be turning back towards blockchain as the technology continues to evolve.
