Saha Swatilakha
The crypto market is showing signs of a strong rebound, with venture capital (VC) investments in crypto startups reaching a staggering $2.5 billion in the first quarter of 2024, according to recent reports from Bloomberg. This marks a 32% increase from the previous quarter and is roughly equal to the same period last year, according to PitchBook data.
The surge in VC investments is attributed to larger funding rounds for crypto startups and the introduction of new venture capital funds dedicated to the digital asset space. This trend is expected to continue, with more venture firms launching new digital asset funds to capitalize on the market’s resurgence.
The renewed interest in crypto startups is also evident in the rising daily trading volume of Bitcoin, which has seen a 70% increase in recent weeks. This has driven crypto investment inflows to a record $13.8 billion, further fueling the market’s rebound.
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Moreover, the industry’s progression toward maturity is attracting more institutional investor engagement, with more initiatives being taken to enhance crypto infrastructure.Ā This is a positive sign for the industry, as more development is needed to attract more investment and increase mainstream adoption.
This is a significant shift from the previous year, where venture capitalists were reluctant to invest in crypto startups due to the bear market and market volatility.
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In conclusion, the crypto market is showing strong signs of a rebound, with VC investments in crypto startups surging. This trend is expected to continue, with more venture firms launching new digital asset funds and institutional investors showing renewed interest in the industry.
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SAHA
Saha is a cryptocurrency journalist specializing in blockchain technology and digital finance.
