2024: Decisive Turning Point for Crypto Industry After a Challenging Year

The year 2023 has been broadly challenging for stakeholders in the crypto industry, particularly in terms of financing. However, with the resurgence of cryptocurrencies and the prospects on the horizon, many industry players believe things will improve by 2024. This optimism is not shared by everyone, though.

The Optimists Regarding the Financing of the Crypto Market in 2024

In 2023, the crypto financing landscape faced formidable challenges. It suffered a staggering decrease of 68% to $10.6 billion, down from the previous year’s $33.2 billion.

Several factors contributed to this situation. Among contributory factors are high-interest rates, the diversion of attention by the expansion of AI, regulatory challenges, and the fallout from crypto collapses involving FTX, Celsius, or even BlockFi.

Yet, despite this less than cheerful state of affairs, several investors in the crypto industry think that the situation should improve by 2024. This is the stance of Coinbase Ventures, Polygon Ventures, NGC Ventures, Multicoin Capital, HashKey Capital, and Animoca Brands.

All these crypto financing actors are somewhat saying the same thing: that 2024 will be a bright year for the industry. This optimism is due, among other things, to regulatory clarity, institutional participation, and innovation in user engagement.

Coinbase, Galaxy, Polygon, Multicoin, and other top crypto VCs share their 2024 funding outlook @TheBlock__

👉 Coinbase Ventures: Increasingly optimistic, expects activity to grow, focuses on crypto infrastructure and consumer applications, supports Base Ecosystem Fund.

— NatsuneOki 📍 EU (@NatsuneOki) December 27, 2023

The position of the Pessimists

This displayed optimism is not shared by some crypto investors, like Mike Novogratz’s Galaxy Ventures. He foresees a challenging and low-key crypto financing landscape in 2024.

According to him, successful companies might face stable or declining funding rounds. This could be because the community of partners would be limited, as it is over-indexed on illiquid investments.

Without necessarily embracing this viewpoint, Shima Capital maintains an optimistically cautious stance. This investor has faith in the long-term potential of the crypto market. However, it acknowledges the inherent risks in this industry.

In conclusion, despite the challenges of 2023, key players in the venture capital space foresee a positive trajectory for crypto financing in 2024. This perspective resonates with projections from several companies related to crypto such as VanEck, Bitwise, Bitget, and Messari. All are predicting record-breaking achievements for the industry in 2024.