Dark
Light
Today: October 7, 2024
August 19, 2024
1 min read

Unlocking Crypto’s Potential: L2 Interoperability Excites VCs Beyond AI


TLDR:

Blockchain VC spending rose to $2.7 billion in Q2 of 2024, with layer-2 blockchains and infrastructure projects gaining traction. Some VCs are cooling on artificial intelligence. Ethereum layer-2 scaling seen as a major opportunity. Dragonfly invested in MegaETH project. Investors should look beyond top cryptocurrencies for opportunities. US events and post-halving lull could impact market. VCs remain optimistic about the blockchain industry in the long-term.

Article Summary:

Blockchain venture capital spending rose to $2.7 billion in the second quarter of 2024, with a focus on layer-2 blockchains and infrastructure projects. VCs are showing interest in sectors like decentralized social media, physical infrastructure networks, and decentralized science. However, some VCs are starting to lose interest in artificial intelligence due to lack of revenue and demand.

Anirudh Pai, a partner at Dragonfly, highlighted Ethereum layer-2 scaling as a significant opportunity in the industry, but also pointed out challenges like liquidity fragmentation. Dragonfly has invested in projects like Caldera and MegaETH to address these issues.

George McDonaugh from KR1 advised investors to look beyond the top cryptocurrencies like Bitcoin for opportunities. He also mentioned that US events like Federal Reserve rate cuts and elections could influence the market, along with the post-halving Bitcoin lull.

Despite challenges, VCs remain optimistic about the blockchain industry in the long-term. Olaf Hannemann from CV VC pointed to a warming rebound in global blockchain venturing in H1 of 2024, indicating overall optimism in the industry.


Previous Story

Navigating the Biotech ‘Valley of Death’: Venture Fund Guidance

Next Story

RevTech Labs: Charlotte’s Top VC for Fintech Startups

Latest from Blog

Go toTop