TLDR:
- The crypto venture capital market experienced gains in the second quarter of this year.
- 577 crypto venture capital deals were completed, with $3.2 billion invested in cryptocurrency start-up firms.
In the second quarter of the year, the crypto venture capital market saw growth, with 577 deals completed according to Galaxy Research (GLXY). While this number was slightly lower than the first quarter, the amount of capital invested in cryptocurrency start-up firms increased to $3.2 billion from $2.5 billion in the previous quarter. The resurgence in cryptocurrency prices was identified as a driving factor for this growth, leading to competition and fear of missing out among investors. Galaxy Research noted that venture capital activity struggled to keep up with the gains seen in cryptocurrencies like Bitcoin. The report highlighted that early-stage companies received 78% of venture capital funds, with the remaining 22% going to later-stage companies. Looking ahead, it is anticipated that venture capital activity in the cryptocurrency sector will continue to accelerate in the second half of the year, building on the momentum seen in the second quarter.
