Venture capitalists injected close to $3.2 billion into the cryptocurrency sector during the second quarter of this year, as reported by Galaxy Digital.
Their analysis reveals a robust rebound in digital asset venture capital activity, continuing from the momentum seen in the first quarter through April, May, and June.
Although the number of deals dipped slightly from the first quarter to the second, dropping from 603 to 577, the total capital invested surged from $2.5 billion to $3.2 billion.
Meanwhile, the median deal size saw a modest increase from $3 million to $3.2 million, with a significant rise in median pre-money valuations, nearing all-time highs at $37 million, indicating heightened competition among investors amid the crypto market resurgence.
Grayscale researchers observe that despite Bitcoin’s trading dynamics shifting from previous highs above $60,000, overall venture capital interest in the sector remains relatively low. They attribute this to a decoupling between Bitcoin price movements and investment flows into crypto startups.
Factors such as the introduction of Bitcoin ETFs, advancements in restaking technologies, and regulatory challenges have influenced investor sentiment. As liquidity returns to the crypto markets and macroeconomic conditions evolve, there is growing anticipation of renewed investor activity in the latter half of the year.
Fabio Panetta, head of the Bank of Italy and former European Central Bank executive, is pushing for the swift rollout of a digital euro, calling it Europe’s best answer to rising crypto risks and global regulatory fragmentation.
Telegram has successfully raised $1.7 billion in a bond offering that drew overwhelming investor interest, exceeding initial targets and signaling strong confidence in the platform’s growth trajectory.
The U.S. Securities and Exchange Commission has officially ended its legal battle with crypto exchange Binance, closing a major chapter in the regulatory crackdown on digital asset platforms.
Circle, the issuer behind the USDC stablecoin, is preparing to go public, and sources say BlackRock is gearing up to take a significant piece of the action—possibly acquiring 10% of the offering.