Venture investments in crypto projects are expected to reach $12 billion by 2024, a slight increase of 2.4% from $9.4 billion the previous year, even as Bitcoin has increased reached a new record level. According to PitchBook crypto analyst Robert Le, the investment pace will continue to increase but not as fast as in 2020 and 2021.
Analysis
Growth Rate: This slight growth reflects a greater stability in the cryptocurrency investment market. After boom years like 2020 and 2021, the market may be going through a period of adjustment and stabilization, with slower but more sustainable growth.
VC (Venture Capital) Sentiment: Venture capitalist (VC) sentiment is often considered a key indicator of the health of the industry. Continued investment despite the slowing pace shows long-term confidence in the potential of blockchain technology and cryptocurrency projects.
Impact on Bitcoin Price: Bitcoin price hitting record highs could spur interest and investment in the industry. However, investors may become more cautious, focusing on projects with real value and long-term potential instead of those that only rely on short-term price increases of cryptocurrencies.
Predictions For 2024
Capital Allocation: Investment funds may focus on infrastructure blockchain projects, DeFi (decentralized finance), and practical applications of blockchain technology rather than purely financial projects. Cryptocurrency. Cautious Approach: Caution on the part of investors can lead to a more thorough project evaluation process, with strict criteria for efficiency and long-term potential.Sustainable Growth: Sustainable growth at a slower pace can help the cryptocurrency market develop in a healthier way, reducing volatility and increasing confidence among large investors.
Overall, although investment growth in crypto projects is not as strong as before, interest and investment continue, showing that the long-term potential of this industry is still huge.