Thursday, February 2, 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

Crypto

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

by e-Naira Online News
February 1, 2023
Crypto

Tesla’s SEC Filing Shows Bitcoin Fair Market Value of $191 Million – Featured Bitcoin News

by e-Naira Online News
February 1, 2023
Crypto

Panamanian Crypto Bill Might Get a Second Wind in the Highest Court of the Country – Regulation Bitcoin News

by e-Naira Online News
January 31, 2023
Crypto

Recruiting Agencies in Japan Are Turning to the Metaverse – Metaverse Bitcoin News

by e-Naira Online News
January 30, 2023
Crypto

Bitcoin posts its best January in ten years, gains 40% within one month

by e-Naira Online News
January 30, 2023
Next Post

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

British American Tobacco earns alliance for Water Stew — Opinion — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

Crypto Bank Custodia Denied Membership in US Federal Reserve System – Finance Bitcoin News

January 29, 2023

Guinness grows half year gross profit by 16%

January 27, 2023

Nigeria, others to meet over development in oil sector | The Guardian Nigeria News

January 27, 2023

Vitafoam Plc advocates special FX window for manufacturing sector

January 28, 2023

NIMASA plots CVFF disbursement strategy with banks — Business — The Guardian Nigeria News – Nigeria and World News

January 29, 2023

NGX CEO says to strengthen partnerships, digital transformation, sustainability

January 26, 2023

CAP full year PBT rises by 79% to N3.1bn

January 27, 2023

Two Stocks Trigger 0.05% Loss At Unlisted Stock Exchange

February 2, 2023

Tinubu distancing self from APC’s failure —Atiku’s aide

February 2, 2023

Why rail sector remains moribund, has no profit in 59 years | The Guardian Nigeria News

February 2, 2023

Nigerian universities and the noise of advancing ideas

February 2, 2023

Moody’s downgrades Nigerian banks’ rating

February 1, 2023

8 Black Financial Influencers You Ought to Follow

February 1, 2023

Despite deadline extension, crowds besiege banks amid scarcity of new notes

February 1, 2023

Federal Reserve Raises Benchmark Interest Rate by 0.25%, Disinflationary Process ‘Early,’ Says Powell  – Economics Bitcoin News

February 1, 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.