According to the Odaily Planet Daily report, Adam Cochran, a partner at the venture capital firm Cinneamhain Ventures, posted on X that venture capital has greatly slowed down its investment in cryptocurrency due to a series of subtle factors. Most VC LPs are interested in beating the returns of index funds, but the risk-reward ratio of holding Bitcoin and Ethereum can easily beat index funds. Rather than taking early-stage risks on Web3 startups, VCs can earn profits through a position-holding strategy and wait for safer, more profitable opportunities. Cochran said that in the last encryption cycle (2020 to 2024), venture capital institutions were keen to invest in "exploded" applications, hoping to obtain large returns with consumers in the later stages. Cochran added that with several recent narrative trends (NFTs, AMM forks, DeFi, L2) it’s unclear what will happen next. According to RootData, crypto venture capital funding exceeded $1 billion in each of the first three months of 2024: March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion). This is a significant increase compared to last year, which only reached this level in November 2023 ($1.29 billion). However, this is still much lower than two years ago, when crypto venture capital investment exceeded $4 billion in each of the first four months of 2022.