According to PANews, the cryptocurrency sector experienced a significant drop in venture capital investments during the third quarter, prior to the election excitement surrounding U.S. President-elect Trump revitalizing industry sentiment. Data from PitchBook reveals that cryptocurrency startups attracted $1.7 billion in investments in the three months ending September 30, marking a 31.3% decrease from the previous quarter. The number of deals also fell by 25.3%, totaling 392 transactions.
PitchBook senior analyst Robert Le commented in the report that this adjustment is a natural and necessary component of a healthy cryptocurrency market. Le attributed the decline in cryptocurrency venture capital deals to macroeconomic factors, including increased market volatility and concerns about a potential U.S. economic recession. Similar to the previous quarter, infrastructure projects such as new blockchains continued to attract the interest of venture capitalists in the third quarter. Le anticipates further consolidation among cryptocurrency exchanges, custodians, and infrastructure companies in the future.
