According to ChainCatcher, Adam Cochran, partner of Cinneamhain Ventures, posted on a social platform that venture capital firms' investment in cryptocurrencies has slowed down significantly, and there is a subtle reason for this. Most venture capital firms have limited partners (LPs), and LPs are mainly interested in outperforming index fund returns. But in the medium term, the risk-return ratio of just holding Bitcoin and Ethereum can "easily beat" index funds.

This allows venture investors to stay on the sidelines of Bitcoin and Ethereum, waiting for safer and more profitable opportunities, rather than taking as much early risk on startups as they would in other industries, because there are no assets in other markets that offer the same holding yield as BTC or ETH.

Adam Cochran said that during the last crypto cycle (2020-2024), venture capital firms "seemed to be very active", hoping to get rich with participants by investing in applications that "have already exploded". However, several known narratives (NFTS, AMM forks, defi, L2s) have come to an end, and it is not clear what to do next.