Recent Developments in Crypto VC
Galaxy Research has noted a sharp decline in venture capital activities within the cryptocurrency sector, as investors shift toward acquiring digital assets directly and refining treasury management strategies.
According to their recent report, funding for crypto and blockchain startups fell to $1.97 billion over 378 deals in the second quarter, marking a staggering 59% reduction in funding and a 15% decline in the number of deals when compared to the previous quarter. This figure represents the second-lowest quarterly total since Q4 2020.
The correlation between Bitcoin’s price and venture capital investment in the sector has reportedly faltered and is struggling to recover. Galaxy suggests this disconnect is due to diminishing interest among venture investors and a market narrative that increasingly favors Bitcoin accumulation.
Shift in Capital Flows
Meanwhile, data from Insights4VC indicates a clear movement in capital flows. Digital asset treasury firms have managed to attract $15 billion in funding this year alone, primarily for increasing their Bitcoin, Ether, and other token holdings.
This growing gap between treasuries acquiring cryptocurrencies and startups pursuing venture capital mirrors a transformation in investor priorities. Backers are now pressing for clearer revenue paths and sustainable business models, remarks Hunter Horsley, CEO of Bitwise.
Noteworthy Fundraising in the Sector
This month’s VC Roundup highlights some significant funding rounds in the realms of on-chain finance, real-world asset (RWA) tokenization, and stablecoin infrastructure:
Mavryk Secures $10 Million
Mavryk Network, a layer-1 blockchain project, raised $10 million led by Multibank Group to boost institutional access to tokenized RWAs, focusing on a partnership aimed at tokenizing over $10 billion in properties within the UAE.
Grvt Raises $19 Million
Grvt, which specializes in privacy-focused on-chain finance, successfully raised $19 million in a Series A round. Their plan is to enhance their product suite, which includes cross-chain applications and options markets.
Stablecore Raises $20 Million
Stablecore, a stablecoin platform for credit unions and regional banks, secured $20 million in seed funding led by Norwest, potentially accelerating stablecoin adoption following the passing of the US GENIUS Act, which is anticipated to revolutionize the industry.
Plural Gathers $7 Million
Plural, working on bridging energy assets with digital markets, received $7.13 million in seed funding. This funding will support their innovative approach to tokenizing high-yield energy assets as demand for renewable energy continues to rise.
