Friday, September 22, 2023
No Result
View All Result
SUBSCRIBE
eNaira Online News
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion
eNaira Online News
No Result
View All Result

Venture capital crypto investments decline by 38% in May 2022

by e-Naira Online News
June 3, 2022
in Crypto
Reading Time: 2 mins read
A A
0
Home Crypto
Share on FacebookShare on Twitter


Due to the bear run the cryptocurrency space has been experiencing throughout the year, recent data from Dove Metrics show that not only are retailers losing money, venture capital firms that have invested in the space are also suffering from the devastating effect of the recent bearish sentiments seen in the market.

According to new data released by Dove Metrics, total venture capital investment in crypto declined 38.2% over the past month, from $6.8 billion in April to $4.7 billion in May. However, these funds have gained 97.8% since last year. This short-term decline in investments can be correlated to the recent market correction, which made Bitcoin (BTC) and other major cryptocurrencies lose 50% or more of their value.

Data on investment distribution showed infrastructure companies received 21% of the pie, while decentralized finance (DeFi) startups accounted for 14%. Centralized finance (CeFi) and nonfungible token (NFT) projects each accounted for 13%.

What you should know

  • The structure of how these VCs have allocated their funds goes to show that venture capital funds might be playing safe by investing in core technologies that actually bring innovation to the crypto space, instead of riskier projects.
  • Some examples of this investment trend include Xendit, a payment gateway solution that focuses on Southeast Asia, and Lithosphere, a next-generation platform for cross-chain decentralized applications, raising $700 million combined.
  • The largest allocation in May was led by Sam Bankman-Fried, founder of the popular crypto exchange FTX, who invested $650 million into the popular brokerage platform Robinhood, securing 7.6% of company shares.
  • Other important investments include the renowned analytics company Chainalysis and KuCoin, one of the biggest crypto exchanges, raising more than $150 million each.
  • Data also shows that the United States is the largest source of venture investments, followed by Singapore and Hong Kong, a statistic that matches the global trend for VC.
  • Some of the biggest venture capital names include Andressen Horowitz, with $4.5 billion raised for Web3 projects, bringing its total crypto investment allocation to $7.6 Billion. The firm is known for backing several successful projects in the past, such as Coinbase or Solana (SOL).
  • Another big name is NGC Ventures, a Singapore-based firm that recently raised $100 million, aiming for “high-potential projects” in the Web3 space. Some of its successful previous investments include Algorand (ALGO) and Oasis (ROSE).

Despite the current crypto bear market, venture capital seems to be more active than ever, with JPMorgan stating that the recent Terra ecosystem collapse didn’t affect VC. This showcases an underlying trust in crypto and blockchain technology evolution in the long term, with innovative technologies like Web3 and DeFi taking the lead.

Related



Source link

Tags: CapitalCryptoDeclineInvestmentsventure
Previous Post

Nigeria’s foreign trade rises to N13 trillion in Q1 2022

Next Post

CBN Instructs Banks, Others To Accept Indemnity For Online Transfer Over N1m

Related Posts

What The SEC’s Latest Announcement Means For The Crypto Industry
Crypto

What The SEC’s Latest Announcement Means For The Crypto Industry

by e-Naira Online News
September 21, 2023
Nigeria’s volume of crypto transactions grows by 9% to $56bn 
Crypto

Nigeria’s volume of crypto transactions grows by 9% to $56bn 

by e-Naira Online News
September 20, 2023
Grayscale CEO Highlights US Opportunity To Lead Crypto Space Through Regulation
Crypto

Grayscale CEO Highlights US Opportunity To Lead Crypto Space Through Regulation

by e-Naira Online News
September 20, 2023
Lawyer Involved In Cryptoqueen’s OneCoin Scam Receives Shocking Response From Court
Crypto

Lawyer Involved In Cryptoqueen’s OneCoin Scam Receives Shocking Response From Court

by e-Naira Online News
September 19, 2023
Why Nigeria needs to regulate the crypto industry now – DCC  
Crypto

Why Nigeria needs to regulate the crypto industry now – DCC  

by e-Naira Online News
September 18, 2023
Next Post
CBN Instructs Banks, Others To Accept Indemnity For Online Transfer Over N1m

CBN Instructs Banks, Others To Accept Indemnity For Online Transfer Over N1m

CBN directs banks to request indemnity for transfers above N1m

CBN directs banks to request indemnity for transfers above N1m

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

  • Trending
  • Comments
  • Latest
Edo govt’s pact with developers promises 454 houses in Benin, Ekpoma

Edo govt’s pact with developers promises 454 houses in Benin, Ekpoma

September 11, 2023
FG to terminate N6 trillion abandoned road projects

FG to terminate N6 trillion abandoned road projects

September 17, 2023
Tinubu nominates Jamila Bio Ibrahim as Minister of Youth

Tinubu nominates Jamila Bio Ibrahim as Minister of Youth

September 17, 2023
Zamfara gov summons security chiefs over abduction of varsity students

Zamfara gov summons security chiefs over abduction of varsity students

September 22, 2023
Why are off-plan sales appealing to developers and potential property buyers in Nigeria?

Why are off-plan sales appealing to developers and potential property buyers in Nigeria?

September 22, 2023
Nigeria’s PMI drops amid surging costs and diminished demand – August report

Nigeria’s PMI drops amid surging costs and diminished demand – August report

September 22, 2023
African Development Bank And Google Collaborate On Digital Transformation In Africa

African Development Bank And Google Collaborate On Digital Transformation In Africa

September 22, 2023
NGX Stock Market Value Falls As Investors Sell OANDO, MTNN

NGX Stock Market Value Falls As Investors Sell OANDO, MTNN

September 22, 2023
Clients aren’t excited by law firm mergers – why should they be?

Clients aren’t excited by law firm mergers – why should they be?

September 22, 2023
NCAA identifies, suspends violators after Max Air contaminated fuel

NCAA identifies, suspends violators after Max Air contaminated fuel

September 22, 2023
Vertiv Further Enhances Manufacturing Capacity For Chilled Water Solutions

Vertiv Further Enhances Manufacturing Capacity For Chilled Water Solutions

September 22, 2023

Get the free newsletter

eNaira Online News

Get the latest news and follow the coverage of eNaira, Business & Financial, Stock Market, Analysis, and more from the trusted sources.

CATEGORIES

  • Banking
  • Business
  • Capital Market
  • Companies
  • Crypto
  • eNaira
  • Finance
  • Opinion
  • Personal Finance
  • Real estate
  • Uncategorized
No Result
View All Result

GET THE FREE NEWSLETTER

  • Disclaimer
  • Privacy Policy
  • DMCA
  • Cookie Privacy Policy
  • Terms and Conditions
  • Contact us

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.

No Result
View All Result
  • Home
  • eNaira
  • Capital Market
  • Business
  • Finance
  • Banking
  • PF
  • Companies
  • Crypto
  • Real Estates
  • Opinion

Copyright © 2022 e-Naira Online News.
e-Naira Online News is not responsible for the content of external sites.