According to PANews, Adam Cochran, a partner at venture capital firm Cinneamhain Ventures, has noted a significant slowdown in venture capital investment in cryptocurrencies. Cochran attributes this to several subtle reasons, primarily that most limited partners (LPs) are only interested in outperforming index fund returns. Additionally, from a mid-term perspective, holding investments in Bitcoin and Ethereum can easily surpass the returns of index funds.
Data from RootData indicates that cryptocurrency venture capital funding exceeded $1 billion in three different months in 2024: March ($1.09 billion), April ($1.04 billion), and July ($1.01 billion). This marks a notable increase compared to the previous year, which saw only one month, November 2023, reaching this level with $1.29 billion. However, this is still significantly lower than two years ago, when the first four months of 2022 each saw over $4 billion in cryptocurrency venture capital funding.