Crypto VC Investment Declines, Yet DeFi Projects Emerge as Hotspots
The prolonged crypto winter has slowed down venture capital interest and investments in the sector. Nevertheless, certain projects continue to attract attention from VC firms and institutions.
Crypto VC Funding Dwindles in 2023
Evan Van Ness, a prominent Ethereum advocate, remarked on September 1 that there's been a noticeable decline in crypto venture capital (VC) activity. He emphasized that this decline isn't attributable to a lack of demand.
In August, crypto funding recorded a notable decline, plummeting to a mere $283 million, marking a stark contrast to the same period in 2022 when a whopping $1.15 billion flowed into the market. This substantial 75% drop is emblematic of the crypto market's shifting dynamics.
A year ago, during the zenith of the bull market in November 2021, investors fervently injected over $7 billion into the crypto sphere within the span of a single month. However, the tides have now shifted dramatically.
One prevailing sentiment among crypto experts, including the notable crypto researcher 'Emperor Osmo,' is that the bear market has effectively quashed the exuberant valuations that once prevailed. In this climate, investment allocations are being made with utmost caution and precision. This newfound prudence is exemplified by the selective attention currently directed towards a few key projects.
Pendle Finance, for instance, stands out as a project of considerable interest. It operates in the realm of tokenized yield and real-world assets (RWA), boasting significant backing from Binance. Impressively, this platform has witnessed an astounding 850% surge in total value locked since the start of the year.
Another noteworthy player is Maple Finance, functioning as a tokenized real-world asset marketplace catering to institutional investors. In a recent development, Maple Finance successfully raised $5 million in August, earmarked to fuel its expansion into the APAC and LATAM regions.
