VC Insights: Funding declines as focus shifts to stablecoins and real-world assets
Recent findings highlight a significant drop in venture capital within the crypto sector, as investments pivot towards stablecoin infrastructure and real-world asset tokenization.
VC Roundup: Amid crypto funding slump, stablecoin, RWA infrastructure draw capital
Galaxy Research reports a notable decrease in crypto venture capital activity as investors transition towards direct digital asset accumulation and treasury strategies.
Although digital assets are garnering unprecedented interest from institutional investors, traditional banks, and corporations, venture capital activity in this sector has significantly slowed since Q1.
According to Galaxy Research’s recent VC report, crypto and blockchain startups accumulated $1.97 billion across 378 deals in Q2, marking a 59% decline in funding and a 15% drop in deal count compared to the previous quarter. This represents the second-lowest quarterly total since Q4 2020.
Researchers have noted a severance in the long-term correlation between Bitcoin’s price and venture capital investments, indicating a complex market sentiment. Galaxy suggests this mismatch arises from decreasing venture capitalist interest and evolving market narratives that favor Bitcoin accumulation over alternate investments.
Mavryk raises $10 million to advance institutional RWA tokenization
Layer-1 blockchain Mavryk Network successfully raised $10 million, led by Multibank Group, to enhance institutional access to tokenized real-world assets (RWAs). This funding is part of a wider partnership to tokenize over $10 billion worth of properties in the UAE.
Grvt closes $19 million Series A round
Grvt, a hybrid cryptocurrency exchange concentrating on privacy-preserving onchain finance, announced a $19 million funding round co-led by ZKsync and Further Ventures. This funding will help expand Grvt’s privacy-focused infrastructure for onchain investments.
Stablecore secures $20 million to assist banks in adopting stablecoins
Stablecore, a platform focused on stablecoin infrastructure, raised $20 million in a seed round. This funding will create a digital asset core platform, simplifying stablecoin management for smaller financial institutions.
Plural raises over $7 million for energy assets
Plural, a financial platform, secured $7.13 million in funding to connect real-world energy assets with digital markets, emphasizing a shift towards sustainable energy solutions.
