TLDR:
– Galaxy Digital released research showing VC market in crypto rebounded 30% quarter-on-quarter in 2024
– VC investments in crypto on the rise with $3.2 billion worth of investments in Q2 2024 alone
The crypto venture capital market has seen a significant rebound in 2024, with investors becoming cautiously optimistic about the future. Galaxy Digital, a global crypto-focused financial services firm, released a research report showing that the VC market in crypto has rebounded nearly 30% quarter-on-quarter. PitchBook also released similar reports indicating that investors are warming up to Bitcoin again after the recent bitcoin rally and the SEC’s approval of bitcoin exchange-traded funds.
Despite a low sentiment on NFTs and the Metaverse, VC investments in the crypto space continue to rise. The Web3/NFT/DAO/Metaverse/Gaming category received the largest share of crypto VC capital in Q2 2024, amounting to $758 million. However, there are concerns that VC investments may be detrimental to the long-term viability of the crypto ecosystem, with some projects launching at inflated valuations and creating market manipulation.
Overall, the crypto VC market is showing signs of recovery and growth in 2024, with VC investments reaching new highs and a positive outlook for the future of the industry.
