VC Money Continues to Flow into Crypto: Firms Received More Funding Last Quarter than Entirety of 2020
This accounts for more than all of 2020, which saw $2.3 billion in investments across 341 deals. The growth was primarily fueled by Bitcoin surging to new highs, bringing in more corporate buyers and retail investors.
Cryptos have had a blazing start to the year, but it is uncertain whether the industry’s rapid growth can be sustained. Since March, things have begun to settle down a little. Institutional demand, for one, dropped significantly following the crypto market’s recent volatility, according to a report from CoinShares. The electronic asset investment company saw institutional inflow into Bitcoin products particularly drop nearly 60% in late March.
Without a doubt, the mainstream resurgence of cryptos have spurred on new moves within the market, ranging from decentralized fund (DeFi) to non-fungible tokens (NFTs).
The NFT space has been winding down because its speculation-filled mania back in February. Based on NonFungible, the average daily value of NFTs sold across marketplaces dropped 85 percent between March 25th and April 1st. As for Dapper Lab’s NBA Top Shot, its whole value of NFTs in circulation plummeted by 50 percent as secondary market demand weakened.
As institutional investors seemed to take advantage of this growing demand for Bitcoin investment alternatives, crypto financial services company NYDIG raised $100 million through Morgan Stanley and Soros Fund.
Published at Sun, 04 Apr 2021 09:58:33 +0000
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These red-hot sub-industries within the broader crypto scene have resulted in hundreds if not thousands of new startups — and venture capitalists are pouring money into them like never before.
These worrying signs will spook some venture capital funds, which might lead to a slowdown in investments throughout the crypto space.
With the electronic art market rising to the spotlight, NBA Top Shot creator Dapper Labs and NFT market OpenSea could raise $305 million and $35 million in financing, respectively.
Will the Crypto Industry’s Present Boon Continue?
Crypto firms got more funds last quarter than in most of 2020.