Crypto 2024: Here Are Optimistic Perspectives of Venture Capital Giants!

In 2023, the cryptocurrency funding saw a significant decrease of 68%. It reached $10.6 billion. However, venture capital giants share optimistic outlooks for 2024.

Coinbase, Galaxy, Polygon, Multicoin, and other top crypto VCs share their 2024 funding outlook https://t.co/ztieVSfDwM

— The Block (@TheBlock__) December 27, 2023

Cryptocurrency Funding 2023: A Year Rich in Challenges

The year 2023 has been a period of uncertainty for cryptocurrency funding. It was especially marked by a significant drop in cryptocurrency investments. The figures show a decline of over 60%, which represents nearly $10.6 billion.

Many factors have contributed to this decline:

• historically high-interest rates,
• the rapid growth of AI (thus diverting attention from cryptocurrencies),
• crises involving major platforms such as FTX, Celsius, and BlockFi.

Another catalyst: regulatory crackdown creating a complex environment for crypto market players.

Despite the Challenges, Venture Capital Firms Are Optimistic About a Bright Future

Despite the challenges of 2023, venture capital giants exhibit cautious optimism about the future of cryptocurrency funding in 2024. For instance, Coinbase Ventures is becoming increasingly optimistic due to:

• increasing clarity of the cryptocurrency regulation,
• maturing infrastructure of the protocols,
• institutional participation,
• innovation.

While being watchful, Galaxy Ventures remains committed to investing in nascent cryptocurrency projects. It indeed anticipates a possible consolidation in the sector, arguing that blockspaces and stablecoins are attractive areas for cryptocurrency investments.

Based in Hong Kong, venture capital firm Animoca Brands also declares itself very optimistic. It even foresees a “considerably healthier” funding environment in 2024. According to it, the rebound of the cryptocurrency market is the beginning of a new bullish cycle.

For its part, Polygon Ventures anticipates a recovery of web3 funding in 2024, highlighting the resilient activity of developers. According to them, consumer-oriented use cases and tokenization should attract institutional investors.

In all, 20 venture capital firms shared their cryptocurrency funding outlooks for 2024. At the heart of their forecasts lie innovation, the adoption of Web3, as well as major opportunities.