n Recent months, VC funding has drastically increased despite market downside and lower interest in the crypto market. With an increase of 15% from July to $600 million. This highlights the increased optimism from institutions and VC’s in crypto related projects.
Infrastructure Dominates Funding
Over the past year, Crypto and blockchain related projects continue to dominate the VC funding sector. The amount allocated constitutes $460 million or 70% of the total. PIP Labs is leading the way in the crypto sector in terms of investment with $80 million dollars series B allocated. Moreover, Bridge, focused on the stable coin market, raised approximately $58 million dollars in a private funding round with the assistance of Sequoia Capital.
The increased popularity of DeFi and Games
Although Defi has not gotten the attention it deserved the past few months, due to new sectors emerging, such as AI, and RWA, it still received huge investment funds with over $128 million dollars in August which is higher than funds received back in July. The biggest funding was for a project called Morpho Labs, a cross chain lending platform, which was able to receive $50 million dollars. On the other hand, Coinbase Ventures and Pantera Capital were more focused on the gaming industry which raised $43 million dollars, a 50% increase since July.
VC Bets on Crypto's Diverse Future
The rising investments in the crypto and blockchain sector by VC’s highlights the sector’s optimism and potential by institutions. The biggest interest was in DeFi, a gaming sector which received the highest increase in funding. With such stakes turning to new products and services, the crypto industry is poised to assume an even more revolutionary position in the global digital economy.
