Is Interest in Crypto Investments Declining?
Crypto venture investments are slowing down. In February, only 116 private deals were made—one of the lowest in recent years. By October 2024, the total deals had crossed 300, but in just five months, they dropped by 60%. While the total investment amount remains steady, the sharp drop in deal numbers is concerning.
Why Is This Happening?
Investors are becoming more cautious, focusing on businesses with long-term potential rather than risky, speculative projects.
Even though around $1 billion was invested in February, the overall investment volume hasn’t changed much since October 2022. Key areas like crypto infrastructure, DeFi, financial services, Web3, and NFT gaming have all seen fewer deals. This could mean the industry is shifting from rapid speculation to a more stable and mature phase.